Trang tiếng Việt
Textile and garment sector lures US$5 billion in FDI PDF Print
Sunday, 03 September 2017 11:41

VIETRADE – Domestic textile and garment sector had attracted US$5 billion in foreign direct investment (FDI) between 2012 and 2016, statistics from the Ministry of Planning and Investment’s Foreign Investment Agency revealed.


The amount of FDI came from 4,981 projects, financed by investors from 26 countries and territories world-wide. Of these projects, only five, worth US$192 million, were joint-ventures while the remainder, capitalized more than US$4.78 billon, were wholly foreign-invested.


With 22 projects, valued at over US$1 billion, Taiwan was the largest foreign investor for Vietnam’s textile and garment industry during the reviewed period. It was followed by the Republic of Korea with 79 projects worth US$870 million and China with three projects, capitalized at US$680 million.


In 2012-2016 period, the southern province of Binh Duong had absorbed the largest share of FDI with approximately US$2.5 billion. Dong Nai Province came second with US$1.14 billion while Tay Ninh Province ranked third with US$799.5 million.


Deputy head of Dong Nai Department of Industry and Trade Le Van Loc said foreign textile and garment investors had made great contribution to the province's annual export revenue over past five years.


US$22 billion needed for the sector

Experts agreed that Vietnam’s textile and garment sector needed foreign investment to address its capital shortage in material production.


Textiles and garment is Vietnam’s third largest export earner. However, the country has not been proactive in obtaining raw materials.


For example, in order to reach last year’s export revenue of US$28 billion, the textiles and garment sector consumed 8.9 billion square metres of cloth, of which domestic factories were able to produce only 2.8 billion square metres, while six billion square metres of cloth was imported, worth US$17 billion.


According to experts, that the sector would require some US$22 billion investment in order to meet the demand for clothes and materials for outsourcing enterprises by 2025.


Beside to sufficient financial capacities, foreign textile and garment firms also had a lot of experience in developing a synchronous production chain of textiles, fiber, weaving, dyeing and design, said Nguyen Van Tuan, Chairman of the Vietnam Cotton and Spinning Association (VCOSA).

This would be an opportunity for Vietnamese garment enterprises to access and learn technologies and strategies for long-term development, he said.

Statistics from the General Department of Customs showed out that the country’s textile and garment industry reached an export revenue of US$2.46 billion in July, up 3.8% over the previous month.


The latest figure brought the export revenue of this commodity group in the first seven months of 2017 to US$14.19 billion, surging 8.1% over the same period last year.


In the seven months of 2017, the United States accounted for 48.8% of the country's textile and garment exports, with a revenue of US$6.92 billion, up 6.3% year-on-year, following by the European Union with a revenue of US$2.08 billion, up 2.7% and Japan with a revenue of US$1.65 billion, up 6.9%./.

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