Many Chinese and Hong Kong textile and garment firms operating in Vietnam have plans to expand their business and investments in the country. Vietnam saw a sharp increase in foreign direct investment from Hong Kong and China in the first five months of this year.
Hong Kong was ranked the second largest foreign investor in Vietnam between January and May with around four times its investment during the same period last year. China was ranked the seventh largest foreign investor in the January to May period with a three-fold year-on-year increase.
FDI in the textile and garment industry of Vietnam has increased since mid-2012 with large-scale projects invested by businesses from China, Hong Kong and Taiwan. Among the projects are a textile and dyeing plant from a Hong Kong company which will occupy 20 hectares and manufacture 3,00,000 tons of fiber and dye 20,000 tons of cotton annually.
Chinese investors are boosting investment in Vietnam because they want tariff-free access to the United States, the largest textile and garment export market for Vietnam, once the two countries join the Trans-Pacific Partnership. Apart from textiles and garments, Chinese and Hong Kong investors have also boosted their investment in real estate in Vietnam.