Quang Nam welcomes investment into garment and textile sector

An inflow of capital investment is welcomed by the central province of Quang Nam into the garment and textile sector. Vo Van Hung, head of the Investment Promotion and Enterprises Support Agency of Quang Nam Province, said that many domestic enterprise delegations and foreign firms coming from South Korea, China and Taiwan have visited the province to seek investment opportunities in the textile and garment industry.

The most prominent project was a fiber-weaving-dying and garment complex worth VND1.2 trillion (US$55.5 million). The complex is being developed by the Viet Nam National Textile and Garment Group in Que Son District which is scheduled for completion within two years and expected to earn VND2 trillion ($92.59 million) annually.

Other projects include a $30-million textile-garment-dyeing factory financed by the South-Korea-invested Panko Tam Thang Co; Korea’s Onewoo garment manufacturing plant capitalized at $6 million; and a Taiwanese apparel factory valued at $4 million in Thuan Yen Industrial Zone.

A dozen investment agreements on developing textile and garment projects were inked between the agency and these foreign investors, Hung said.

According to analysts, the new investment inflow into the garment and textile industry is likely, as both domestic and international firms seek to take advantage of the benefits Vietnam will potentially get when the Trans-Pacific Partnership Agreement is signed.

Once Vietnam becomes a TPP member the average tax on Vietnamese garments will decline l from the current 17 or 18 percent to zero.

The textile and garment industry in TPP member countries is expected to benefit the most from the trade deal. For instance, products made from domestically sourced materials or imported from other TPP member countries will not face tariffs when exported to signatory countries.

According to Le Tien Truong, vice chairman of the Vietnam Textile and Apparel Association, up to 60 percent of the country’s textile and garment exports go to member countries.