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    Foreign Direct Investment Flowing Into Vietnam'S Textile And Clothing Industry Rebounded

    2024/4/28 21:02:00 1

    Vietnam?

    The Vietnam News Agency reported on April 23 that after a period of silence, foreign direct investment (FDI) into Vietnam's textile and clothing industry has rebounded. Foreign enterprises such as Crystal Group in Hong Kong, Japan YKK Co., Ltd., a world-class zipper manufacturer, and SAB, a leading Chinese apparel fabric company, have invested in Vietnam. Vietnam's textile and clothing exports are gradually recovering after experiencing negative growth in 2023. In the first quarter of this year, textile and clothing exports reached nearly 8 billion US dollars, up 7.9% year on year.

    It is reported that Hong Kong Crystal Group of China invested in the Yi Da Denim Mill project in Nanding Province, with a registered amount of more than 1.5 trillion dong (equivalent to 450 million yuan), which will be implemented in three phases. In the first phase, more than 880 billion dong was invested to produce dyed fabrics, non dyed fabrics and clothing, which is expected to be officially put into production in the third quarter of 2026. The second and third phases of the project are planned to be implemented from the fourth quarter of 2026 to the fourth quarter of 2030. Previously, Crystal Group has carried out business in Haiyang Province, Haiphong City, Beijiang Province, Fushou Province and Pingyang Province, with a total export of about US $1 billion and 40000 jobs. The second factory invested and built by YKK Co., Ltd. in Vietnam is located in Tongwen Industrial Park, Henan Province. Compared with the factory invested and built in Tongnai Province before, it has a larger scale and more advanced technology. The Vietnam SAB factory built by the leading Chinese garment accessories company, Weixing Co., Ltd. (SAB) in Bianshan Industrial Park, Qinghua Province, has been officially put into operation. The factory was commenced in July 2022, covering an area of 66.44 hectares, with a total investment of about 62 million dollars. It specializes in the production of metal zippers, plastic zippers, nylon zippers, plastic buttons, metal buttons, etc. After the project is put into operation, it will help reduce the import of the above products from Vietnam's textile and clothing industry.

    Vietnam Textile and Garment Association (Vitas) pointed out that the introduction of foreign capital in the textile and garment industry grew rapidly in the fourth quarter of 2023 and the first quarter of this year. Several international textile and clothing manufacturers are expanding their business scope in Vietnam. Vietnam has joined a series of new free trade agreements, especially the Comprehensive and Progressive Trans Pacific Partnership Agreement (CPTPP), the Vietnam Europe Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP), which will provide great help for domestic and foreign investors to expand their investment in Vietnam's textile and clothing industry.

    (Source: website of Ministry of Commerce)

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