Vietnam Garment Industry keeps attracting FDI in 2014

The textile and garment industry would continue to experience an increase in foreign investment next year, but investors would focus on garment factories instead of material production projects.

Vitas vice chairman Le Van Dao said Taiwan, Hong Kong and South Korea would remain the biggest investors in Viet Nam's garment and textiles industry.

Vitas said that while the rising foreign investment into the clothing industry was a good sign, it also meant that Viet Nam was not receiving any backing for development of weaving and dyeing factories.

Viet Nam currently has to import up to 80 per cent of the material needed by the garment sector annually. Domestic companies can only supply 30 to 50 per cent of the country's demand for cotton, fibre and other materials required to make shirts, jeans and other basic clothing.

Manufacturers have also faced difficulties as prices for imported materials have leapt by 30 to 40 per cent this year.

To meet some of the demand for textiles, the Viet Nam Garment and Textile Group (Vinatex) and the Viet Nam Oil and Gas Group (PetroVietnam) have built the Dinh Vu fibre production factory in northern Hai Phong City. Vinatex has also built four weaving and dyeing industrial zones in an attempt to attract domestic and foreign investors.

The Ministry of Industry and Trade also plans to develop a material and a dyeing zone in southern Dong Nai Province by 2015.

From VietNamNews