Vietnamese provinces of Dong Nai, Binh Duong and Quang Ninh have attracted investment in the textile and garment sector during 2013, believed to be in anticipation of the proposed Trans-Pacific Partnership (TPP) agreement covering 12 countries—Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.
A US$ 40 million textile unit having 25,900 spindles for producing cotton yarn was inaugurated in the country’s southern province of Binh Duong in May 2013. South Korean textile and garment manufacturer KyungBang has invested in this textile unit.
In June 2013, another South Korean firm Hyosung, the world’s largest spandex producer, announced its decision to expand its Creora brand spandex production facility in Dong Nai, another province in southern Vietnam.
The northeastern province of Quang Ninh also attracted investment from foreign textile and garment firms. Hong Kong’s Black Peony announced construction of a $100 million denim factory at Hai Yen Industrial Park.
Meanwhile, TAL Hong Kong Development Company has shown interest in investing another $200 in building a garment factory in Dong Mai Industrial Park in Quang Ninh province. The new investment would be in addition to the $40 million textile and garment factory set up in 2004.
China’s Texhong Group began operating its $200 million fabric plant in the province in July 2013. The company also started building its $400 million second phase of the plant with an aim to make it operational in 2014.
In 2013, Vietnam’s textile and clothing exports were valued at $17.9 billion, registering a growth of 18.6 percent year-on-year, according to the data from the General Statistics Office. Over 50 percent of Vietnam’s textile and apparel exports are destined to the US, one of the countries negotiating the TPP.