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
CUSTOMS BUDGET REVENUE EXPERIENCES 3% DECLINE IN Q1
Vietnam’s import and export value reached a total of US$145.59 billion in the first quarter (Q1) of 2024, marking a year-on-year growth of 18.2%. However, the customs budget revenue saw a 3% year-on-year decline, amounting to VND71,520 billion in the quarter, thereby achieving 19.1% of the full-year target.
RAPID LAW IMPLEMENTATION MAY PROPEL MARKET FORTUNES
“Investors and developers are looking forward to the implementation of the new law, which will remove obstacles for a range of projects that are struggling due to stalled procedures and lack of legality. For them, the earlier the better,” he said.
NATION URGED TO BUILD ON ECO-IP MODEL
Industrial parks (IPs) involved in an initiative that aims to help push them into the realm of being classed as eco-parks have seen improvements across a string of indicators, according to a review event in Ho Chi Minh City last week.
YEN LU INDUSTRIAL PARK: NEW DESTINATION FOR INVESTORS
Bac Giang is a destination chosen by many domestic and foreign investors thanks to its locational advantages and its most opening and favorable investment policies. Assisted by local authorities, Capella Land Joint Stock Company has effectively invested in industrial zones, especially Yen Lu Industrial Park - a new destination for investors, to contribute to the province’s success in investment attraction.
DEMAND SOARS, POWER ECONOMY URGED
The serious electricity shortage in the northern region in May-June 2023 is a valuable lesson on the importance and pivotal role of ensuring electricity security for socioeconomic development.
OPTIMIZING LEGAL AND REGULATORY FRAMEWORKS FOR EFFICIENT PUBLIC INVESTMENT DISBURSEMENT
According to the Ministry of Planning and Investment, a 1% increase in public investment raises GDP by 0.058%, and each VND1 disbursed stimulates an extra VND1.61 from the non-state sector. However, plan implementation often falls short at around 80% annually, despite government efforts.