Simplify B2B Networking
Along with the growing export of garment products, Vietnam has seen increased Foreign Direct Investment (FDI) in its booming textile and apparel industry, making the country one of the most popular destinations in Asia for textile investment. Singapore, China, the US, Japan and South Korea are currently some of the largest textile investment sources for Vietnam’s textile and apparel industry.
According to the data from Vietnam’s Foreign Investment Agency (FIA), FDI investments in Vietnam were up 152.78% year-on-year in the first two months of 2017, and investment in Vietnam’s textile and apparel industry now accounts for 21% of the country’s total FDI.
FIA also reports that Chinese investors have registered 123 investment projects in Vietnam between January and February of 2017. One of the largest among these Chinese investments is the $220 million invested in a Vietnam polyester synthetic fibre plant in central Tay Ninh province.
Chinese investors have been pouring increasing amounts of money into Vietnam and China is now the second largest FDI contributor to Vietnam, after Singapore. In the January-February period, a total of $721.7 million came to Vietnam from Chinese FDI, representing a total of 30% of FDI registered in Vietnam. Chinese investment in Vietnam’s textile plants will enable Vietnam to have more advanced technology and increased capacity in its textile and apparel productions.
Meanwhile, textile investment from South Korean in Vietnam are also increasing. By early 2017, South Korea’s Sea-A Group has committed a total of $2 billion in capital in Vietnam’s textile and garment industry. The Sea-A group has been operating in Vietnam for over six years and has a garment plant that turns out seven million products a year with a workforce of 3,000.
Growing foreign direct investment in Vietnam’s textile and apparel industry is believed to have become one of the major side-beneficiaries after Vietnam joined the Trans-Pacific Partnership (TPP). When joining the TPP, the textile tax rate reduces to 0%, which also indicates a larger growth and more profit for Vietnam’s textile and apparel exports.
Vietnam’s Ministry of Trade and Industry suggests that the increasing FDI is also attributed to the fact that Vietnam will implement all commitments under the ASEAN Free Trade Agreement with China and with other major ASEAN markets, the ASEAN Economic Community (AEC), World Trade Organisation (WTO), and new generation free trade agreements. All of these implementations and agreements are expected to create highly favourable conditions for the country’s economic development.
Thousands of Vietnam’s leading textile companies can be in your contact list if you register with BizVibe today! Whether you are looking for reliable suppliers, top textile manufacturers, wholesalers, or potential customers in over 70 major countries, or want to find out what your competitors are buying and which suppliers they’re using, BizVibe can help you reach out to sales prospects and decision-makers in the textile industry across the globe.
Register for free now to build your own network of global textile companies on BizVibe