FDI Capital Flows Strongly into Textile Projects
Investment registration certificate for Yi Da Denim Mill (VN) Co.Ltd implementing a project to produce textile products in Rang Dong Textile Industrial Park (Nghia Hung) approved by the Provincial Industrial Zones Management Board Nam Dinh issued in February 2024. According to the certificate, the project has a total registered capital of 1,467 billion VND, divided into 3 phases. Phase I of the Project has an investment of more than 880 billion VND, investing in the production of dyed fabrics, undyed fabrics and clothes, and will go into official production from the third quarter of 2026. The following phases of the Project are expected to be implemented from the fourth quarter of 2026 to the fourth quarter of 2030. This is a project invested by Crystal Group, Hong Kong (China). Before investing in the project in Nam Dinh, Crystal Group had factories operating in Hai Duong, Hai Phong, Bac Giang, Phu Tho and Binh Duong, with total export revenue in Vietnam of about 1 billion USD, creating jobs for 40,000 workers.
The world’s leading zipper company YKK has invested in a second factory in Vietnam, located in Dong Van Industrial Park (Ha Nam), with a scale and more modern technology than the factory invested in Dong Nai. Mr. Yuji Furukawa, General Director of YKK Vietnam, said that after 25 years of presence, YKK Vietnam increased zipper production 100 times and increased the number of employees seven times, to 2,800 people.
Vietnam Textile and Apparel Association (VITAS) stated that FDI capital in the textile and garment sector will increase rapidly in the fourth quarter of 2023 and the first quarter of 2024. While investment in fabric, zipper, and sewing thread projects has expanded, capital in the fiber industry has stagnated. A number of projects invested in 2022-2023 have begun to be completed and put into production, helping to improve the industry’s supply capacity and creating a boost for new projects.
Recently, SAB Group (China) put into operation SAB Vietnam Industrial Factory in Bim Son Industrial Park (Thanh Hoa). The factory was started in July 2022, has an area of 66.44 hectares, and a total investment capital of about 62 million USD. The factory specializes in manufacturing clothing accessories such as metal zippers, plastic zippers, nylon zippers, plastic buttons, metal buttons… The project comes into operation will help reduce the import of raw materials in the textile industry.
According to Mr. Yuji Furukawa, previously, YKK Vietnam had to import some zipper products from foreign YKK companies to supply to domestic customers, but now, the factory in Vietnam has produced a variety of zippers. section of YKK products. In addition to “on-site export”, products are also exported to countries such as Cambodia and Myanmar. Along with helping the textile and garment industry gradually reduce its dependence on imported raw materials, FDI capital also contributes to solving a number of key issues: faster production time, lower transportation costs, more competitive prices, taking advantage of preferential tariffs from 15 current FTAs. It is known that Vietnam’s textile and garment exports are gradually recovering after negative growth in 2023. In the first quarter of 2024, textile and garment export turnover reached nearly 8 billion USD, an increase of 7.9%; textile fiber exports reached 1.05 billion USD, up 12.1% over the same period. FDI enterprises contribute over 60% of total export turnover.
