Chinese investment in Vietnam rose to $2.3 billion in 2013, up sharply from the $345 million in 2012, says the Ministry of Planning and Investment’s Foreign Investment Agency. Most of this investment is happening in the garment and textile as well as real estate sectors.
Recently the Nam Dinh Provincial People’s Committee approved an investment license of Chinese garment and textile giant Jiangsu Julun Textiles Group to construct a $68 million manufacturing facility on an 80,000 sq. mt. area at Bao Minh Industrial Park in Vietnam. When fully operational, the factory specialising in yarn, will have a total annual production capacity of 9.816 tonns, suitable for the production of textiles, sewing, crocheting, knitting and weaving.
In another development, Hong Kong’s Luenthai company, the Vietnam National Textile and Garment Group (Vinatex) and China’s Sanshui Jialida Textile Company held a working session with the leaders of Nam Dinh province, holding preliminary discussions on the constructing a multi-million garment manufacturing facility in the industrial park (IP).
Spread over an area of 1,500 hectares in Nghia Hung district, Nam Dinh province, the IP project has a projected initial investment of $400 million and a target market of developing fields like weaving, dyeing, leather, garments and textiles as well as support industries for Vietnam’s garment and textile sector. Pending final approval, the project is expected to begin construction in late 2014.
In recent times, the garment and textile sector of Vietnam has attracted investments from China, Taiwan, and Hong Kong. Notably, Chinese Texhong Textile Group has invested in two factories in the southern province of Dong Nai with capacity of 500,000 spins of yarns and generated 4,500 jobs in the locality. Subsequently, the group expanded its investment in Vietnam with the addition of a $300 million facility in Quang Ninh province.
Companies in China are said to be increasing their investments in Vietnam sighting signing of the Trans-Pacific Partnership (TPP) that will allow lucrative additional market access. Specifically the TPP rule of origin (yarn forward) which requires businesses to use raw materials, supplies and components in the manufacturing process that originate in the same country the manufacturing facilities are located in, would be greatly in favour of the companies setting up their manufacturing base in Vietnam.
