Want to be in the loop?
subscribe to
our notification
Business News
PERFECTING THE TEXTILE AND APPAREL SUPPLY CHAIN
Two major foreign direct investment projects on accessories production in the textile and apparel industry concurrently coming online late last month have boosted the sector’s production capacity as well as perfected its supply chain.
Particularly, global zipper manufacturer Velcro has inaugurated its zipper manufacturing facility in the southern province of Binh Duong, looking to serve the Vietnamese market and boost exports to the markets where Velcro’s major business partners are positioned.
According to a source from Velcro, the Vietnamese textile and apparel industry features enormous export potential which is expected to touch $35 billion this year. Meanwhile, there is still ‘vacant space’ in the supply chain, particularly in accessory production, providing opportunities for global manufacturers like Velcro.
Velcro’s global strategic director Bryan Whitfield revealed that they had an array of choices of where to build the zipper factory, but they ultimately chose Vietnam.
The decision was based on diverse factors, such as Vietnam’s lucrative investment environment, its constantly growing export production sectors, the ability to tap into opportunities from Vietnam’s membership to diverse important free trade agreements (FTAs), such as the EU-Vietnam FTA, the Vietnam-South Korea FTA, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
“Compared to other countries, Vietnam is full of potential for brand expansion and product development. Velcro will focus on operations, bringing products closer to local consumers, while simultaneously opening a website for brand promotion.
“With Vietnam’s abundant workforce and dynamic economy, Velcro’s management believes in success in the Vietnamese market,” said Whitfield.
Less than one week before Velcro’s factory launch, South Korean group Kolon Industries Inc. inaugurated and put into operation its $220 million polyester tyre cord fabrics plant based in Bau Bang Industrial Park in Binh Duong.
Kolon’s executives said that the Binh Duong factory follows the smart factory model with a first-phase production capacity of 1,400 tonnes of polyester tyre cord fabrics per year.
According to the group, the project’s first phase has an investment value of $220 million, which will increase to $600 million in the second phase slated from 2018 to 2026, and is expected to reach $1 billion in the third phase.
As planned, the textile and apparel sector will have an additional supply of accessories next year as the first phase of Germany’s Amann group’s embroidery thread production facility will be completed in June. The facility will have an annual production capacity of 2,300 tonnes, with the first phase contributing for 1,000 tonnes.
Foreign-invested projects on textile and apparel accessories production has created $1.2 billion export value last year. This figure is expected to increase in the forthcoming years with the recent launch of these two major factories.
Source: VIR
Related News
DIGITAL TRANSFORMATION IN LOGISTICS – A KEY TO UNLOCKING SUSTAINABLE E-COMMERCE AND ECONOMIC DEVELOPMENT
Accelerating digital transformation in logistics is critical in order to promote the sustainable development of e-commerce, a conference on applying technology held by the Ministry of Industry and Trade heard on Thursday, as well as accelerating overall economic growth.
SOILBUILD EXTENDS ITS HORIZONS INTO VIETNAM INDUSTRIAL REAL ESTATE
Soilbuild Group, an integrated real estate group, has broadened its investment in industrial real estate to Vietnam through its Soilbuild International division. The official launch of Soilbuild International (Vietnam) took place in Hanoi on May 9th, 2024, and was attended by esteemed guests, including domestic and international partners.
SEMINAR: BUSINESS SPOTLIGHT - THE HONG KONG-INSPIRED PRESENCE NESTLED IN THE HEART OF HANOI'S EAST
16h00 - 18h00, Wednesday (May 22nd, 2024)Almaz Convention Center - Hanoi (GG map: https://maps.app.goo.gl/YtWyGgkiTwWvFnfX6)
VIETNAM SECURES REMARKABLE ECONOMIC SUCCESSES SINCE NATIONAL REUNIFICATION
Since the national reunification on April 30, 1975, Vietnam has obtained admirable economic achievements and is now on its way to become the 20th largest economy in the world. Back to 1975, Vietnam, torn by two major wars, was a backward economy dependent on agriculture and foreign assistance. Foreign loans and aid accounted for over 63 percent of its budget.
350 EXHIBITORS TO TAKE PART IN HCM CITY PAPER, COATINGS, RUBBER, PLASTIC EXPOS
They will have a total display area of 10,000sq.m, 30 per cent more than last year, and the participation of over 350 local and international exhibitors who will showcase thousands of products and technologies.
INT’L INVESTORS EYE VIETNAM’S DATA CENTER MARKET – REPORT
Vietnam’s data center market is increasingly attractive to foreign investors, driven by the country’s expanding digital economy, rising data consumption, and supportive government policies, said a new report by JLL. While Vietnam’s data center sector has traditionally been dominated by local telecommunications companies, global players are now entering the market.