Petrovietnam oil and gas group (PVN) and Vietnam National Textile and Garment Group (Vinatex) signed a strategic cooperation agreement regarding the purchase of polyester fiber produced by Dinh Vu PetroVietnam Petrochemical and Textile Fibre JSC (PVTEX). The agreement is the outcome after more than one year of commercial operation of Dinh Vu Polyester plant.

So far, its products have been domestically and internationally credible and the quality has improved to the level of imported goods. It is now a stable background for close and comprehensive relation between the two groups in various fields such as polyester provision, export market extension cooperation, staff training and product evaluation as well as other aspects for the mutual benefit and enhancement of trademark value of both sides, PVN said.

Vinatex committed to purchasing as much fiber products from Dinh Vu PVTEX as possible and to use no less than 50 percent of that purchased in its production.

PVN, meanwhile, committed to directing Dinh Vu PVTEX to provide polyester fiber products of good quality and competitive prices for Vinatex. The agreement also provides for close cooperation in the development of markets when Vinatex uses polyester fiber products of Dinh Vu PVTEX as inputs for export production lines.

At the signing ceremony, Vice Minister of Industry and Trade (MoIT) Tran Quoc Khanh said that the signing of Dinh Vu polyester fibre consumption agreement is an important event showing the close cooperation between the two big groups. In the development strategy, the Vietnam Oil and Gas Group have indicated the importance of developing the post-refinery stage, manufacturing the essential goods and enhancing the value of textile industry in accordance with the Government's requirement to Petrovietnam.

According to Mr. Quoc Khanh, the capacity of the plant can meet about 40 percent of market demand for fiber, ensure the supply of raw materials of stable quality, reduce the import of raw materials, and avoid fluctuations in the exchange rate.

Vinatex General Director Le Tien Truong said that the stable qualified product of Dinh Vu Polyester Plant is good news for textile enterprises. They

can sign a consumption agreement on equal and straight basis. Vinatex enterprises wish to be given priority in buying PVTEX products with over 50 percent total demand of each enterprise.

The cooperation for polyester consumption and market development is to ensure not only material stabilization, product competitiveness increase and market extension for Vinatex enterprises but also Vietnam garment trademark promotion and increased domestic rate of textile industry to 60 per cent.

The cooperative agreement between Petrovietnam and Vinatex has affirmed the right policy of Dinh Vu Polyester Construction Project in the light of the impending approval of the Trans-Pacific Strategic Economic Partnership Agreement (TPP) and its implementation. The use of domestic products will bring big advantage for Vietnam garment enterprises in general and Vinatex in particular in terms of price, shipment time (from 2 weeks to 2 days), especially the product's origin (from polyester stage) as stipulated by TPP, PVN said.

Dinh Vu PVTEX was the first polyester fiber plant in the north, in Hai Phong, with total design capacity of 175,000 tons of fiber per year using advanced technology. Both groups have expressed their determination to implement a localization policy on raw materials.