China, Japan, Hong Kong are investing in Vietnam’s textile industry in a big way. Hong Kong’s TAL Group will build a fiber production, knitting and fabric dyeing factory. A Chinese company is investing in a fiber-weaving-dyeing project. Japanese trading firm Itochu will invest in the Vietnam National Textile and Garment Group (Vinatex). Vinatex is Vietnam’s largest state-owned textile company. It operates about 200 factories around the country, of which about 30 are involved in sewing garments for Itochu under a contract.

Itochu currently does business with about 100 Vietnamese textile companies. It deals in everything, from the procurement of raw materials to sewing, and supplies suits, shirts and other products to Japan, the United States and Europe. It is the largest Japanese firm in the country's textile industry.

In the past 10 months alone Vietnam has approved almost 20 new FDI projects. Apart from building factories, many foreign corporations have bought shares or cooperated with Vietnamese partners. In south Vietnam, many corporations of Taiwan and Hong Kong have also strengthened their investment in the textile and garment industries.

Vietnam sees the inflow of foreign capital as an opportunity for homegrown enterprises to develop their technology and buy materials at low prices.