Vietnam is among the world’s five biggest garment-textile exporters and producers. But, after a shift of orders from Vietnam garment firms to countries with low labor cost and tariffs such as Cambodia and Bangladesh, the textile sector suffered significant hardships. Later on, with investment in technology and adjustment of cost and inappropriate policies, it has bounced back and a lot of large orders are now returning to Vietnam.
Vietnam is also indulging in free trade agreements that will contribute towards growth of the textile industry through increase in exports. Businesses are returning to Vietnam since the quality and supply chain has improved.
By spending $47 million, 10% shares of VINATEX (Vietnam National Textile and Garment Group) has been bought by Japan’s Itochu Group. Furthermore, investment license worth $25 million were also granted to the garments and textile project of Taiwan’s Apparel Far Eastern Co. by the Binh Duong province.
Singapore’s Herberton Ltd. also recently carried out the Nam Dinh Ramatex Textile and Garment Factory project worth $80 million in the Nam Dinh province. The factory is likely turn operational next year with a capacity of 25,000 tonnes of fabric of various kinds and 15 million clothing items a year, creating jobs for around 3,000.
