Vietnamese textile, garment exports likely to exceed $30bn in 2017

Vietnam has not witnessed many large-scale new foreign direct investment (FDI) projects in its textile and garment sector this year as was seen three years ago. However, foreign investors are seen expanding their existing projects, pouring around $2 billion worth investment into this sector this year to date, as a result Vietnam’s textile and garment exports turnover in 2017 likely to exceed the target of $30 billion, according to the Vietnam Textile & Apparel Association (VITAS). The turnover was $17 billion in the first seven months of this year.

The ministry of industry and trade has cautioned that export markets have increased their trade remedies against Vietnamese products. India, for example, imposed a tax of 35-45 percent on elastomeric filament yarn.

While South Korean enterprise Long Thai Tu Yarn will invest $50 million to expand its workshop in Long Khanh industrial zone (IZ) in Dong Nai province, Trillions Enterprise from Brunei, which has a dyeing and weaving factory in Tan Duc IZ in Long An province, wants five more hectares to scale up production.

Taiwanese Far Eastern has registered additional investment capital of $485.8 million, raising its total investment in Bau Bang IZ to $760 million after two years of operation.

Among the Vietnamese firms that have stepped up investment, Bao Minh Textile has invested $75 million in a cloth-making unit in Nam Dinh that is likely to become operational by March 2018.

Though companies no longer expect nil tax, Vietnam remains a big garment exporter globally, according to VITAS chairman Vu Duc Giang.

Vietnam’s textile and garment industry enjoys benefits from other free trade agreements, including the ones with the European Union (EU), South Korea and Japan. Besides the Trans-Pacific Partnership (TPP)