The Vietnam National Textile and Garment Group (Vinatex) said on May 10 that it will team up with Itochu Corporation of Japan to build a modern fibre plant in the northern province of Nam Dinh.
According to Vinatex, construction of the plant is scheduled to start soon at Bao Minh Industrial Park in Nam Dinh province with a total investment of U$$120 million.
It is expected to become operational in 2013 and bring jobs to 3,000 workers.
Established in 1858 with seven subsidiaries operating in the fields of mechanical engineering, textile industry, chemicals, gas and oil, energy, foods, insurance, finance, construction, real estate, Itochu is now one of the largest economic groups in Japan.
With a charter capital of $2 billion, the corporation operates in 139 countries across the world, including Vietnam.
Textile production is Vietnamís key industry, helping to create many jobs and contributing to the countryís social welfare. It is a key sector that contributes significantly to the countryís export turnover, with trade surplus of about $6 billion in 2011.
Itochuís decision to invest in this field is expected to help Vietnamís textile sector to raise its production capacity, expand markets and increase export turnover.