Investment in auxiliary industry for garment on sharp increase

Since early this year, Binh Duong has absorbed more than US$614mln in FDI capital, 50% of which has been poured into auxiliary industry for garment. This shows that the province’s efforts calling for investment is in the right direction, creating favorable conditions for garment, one of the local spearheading sectors, to reach sustainable development.

Jean trousers being manufactured at Dai Tay Duong Company in Thuan An town-based VSIP 1

Investment capital on strong rise

Realizing the importance of auxiliary industry for garment, especially at a time when the Trans-Pacific Strategic Economic Partnership Agreement (TTP) is entering into the final negotiating rounds, Binh Duong has made great efforts in attracting investment in the industry.

In August 2014, Nam Phuong Textile Co.Ltd., a joint venture between Hong Kong’s Haputex Development Limited and Viet Huong Investment Development Joint Stock Company, the investor of Viet Huong 1, 2 Industrial Parks decided to build a US$120-mln textile factory.

Covering 12 hectares, the factory is divided into 3 phases and after being completed, it will generate jobs for 3,000 laborers and produce nearly 100 mln meters of fabric a year.

In early 2014, KyungBang Vietnam Co.Ltd. under Rok’s KyungBang Group also poured additional US$54.2mln for production expansion only after one-year operation, bringing its total investment capital so far to US$94.2mln. This is also the first company making investment in auxiliary industry for textile and garment in Binh Duong.      

Especially, Tran Van Nam, Chairman of provincial People’s Committee, on June 29, granted an investment certificate to Polytex Far Eastern Vietnam Co.Ltd to build a factory producing synthetic fibers. With a total investment of US$274mln in the first phase and over US$700mln in the second phase, this is one of the biggest projects in auxiliary industry for garment in Binh Duong in particular and in the whole country in general so far.

Increasing the strength of garment sector

For two years only, Binh Duong have lured great FDI projects in auxiliary industry for garment. Along with seizing opportunities before favorable happenings in signing the TTP, most investors in the industry in Binh Duong said that a favorable investment climate plus active support by provincial People’s Committee was a key element for them to strongly invest in the province.

Cheng Cheng Yu, CEO of Polytex Far Eastern Vietnam Co.Ltd. said that Far Eastern Group in 2007 opened a garment company at Vietnam-Singapore 1 Industrial Park (VSIP 1). Believing in the investment climate of the province plus effective ways of Becamex IDC, the group decided to spend US$274mln on Polytex Far Eastern Co.Ltd to build a factory producing synthetic fibers in the Bau Bang Industrial Park.

According to Mr.Nam, the project is in line with the investment attraction orientation of the province. In the coming time, the province will further attract investment for auxiliary industry in order to promote garment industry in particular and other industries operating in the province.

It is obvious that Binh Duong has made great efforts in attracting investors in auxiliary industry for garment. This has contributed to helping the local and national garment industry reach more sustainable development, thereby increasing production value and stabilizing laborers’ lives.

Reported by Khanh Vinh-Translated by K.T