Vietnamese textile and apparel export was stable with turnover hitting US$6.84 billion in the first quarter, a year on year increase of 11.2 percent, reported Vietnam Textile and Apparel Association.Most businesses have had orders for the second quarter this year. Vietnamese garment products have been present in over 40 countries and territories including the US, Japan, South Korea, China and the EU.

However, orders have been in shorter and shorter terms with price not increasing. Therefore, the association advised businesses to fully exploit the efficiency and capacity of machines and equipment to reduce costs.This year, the garment and textile industry has set a target of reaching a growth rate of 6.5-7 percent compared to 2016 with the turnover topping US$30 billion.

The biggest increase in investment capital in the textile and garment sector in the year so far is the expansion of the plant to manufacture polyester fibre products by Taiwanese Polytex Far Eastern Group in Binh Duong Province.This investor has been granted a license to increase investment capital by an additional US$485.8 million less than two years after making the first investment in the project, raising the total investment to nearly US$760 million.

Although the investment in Vietnam was admittedly to take advantage of business opportunities from the Trans-Pacific Partnership (TPP) Agreement, Far Eastern affirmed that even if the TPP is suspended, their capital increase plan will remain unchanged.Earlier in June 2015, this investor was granted an investment certificate for the construction of the plant. The facility covered 99 hectares with the investment value of US$274 million for the first phase.

Vietnam Textile and Apparel Association (VITAS) said that a number of Korean investors are also planning to expand their production in Dong Nai and Binh Duong with the ambition to exploit export markets in the near future.The decision to increase capital in the context that textile and garment export has just undergone a difficult year shows the confidence of foreign investors in the sector.Domestic textile and garment enterprises also have not lose sight of the expansion trend. Accordingly, Vietnam National Textile Garment Group (Vinatex) will launch the construction of Phu Cuong Fibre Factory phase II in Phu Cuong commune, Dinh Quan district, Dong Nai Province.

This project’s scale is as same as the first phase, with a designed output of over 5,000 tonnes of yarn per year, and holding a total investment of more than VND460 billion (US$21.85 million).In addition, the construction of Nam Dinh Fibre Factory phase II is also included in the 2017 investment plans of Vinatex, with the total investment of more than VND300 million (US$14.25 million), serving export products.

Source: Saigon Daily