French group Scavi is investing heavily in Vietnam with the country joining the CPTPP. Scavi is one of the world’s top enterprises in lingerie, swimwear, and sportswear segment. North America and Japan are the group’s key export markets, accounting for 40 per cent of its total revenue.

Vietnam’s textile and garment industry will not be the only sector to benefit when Vietnam officially joins the CPTPP. Aquaculture, timber manufacturing, logistics, realty, and agriculture are also looking at bright prospects, as more FDI will reach these sectors.

Another giant in the textile and garment space, Hyosung Corporation, is also in the process of expansion in Vietnam. Similarly Korea-based Hi Knit has also been granted an investment license. With a total registered capital of $40 million, the company produces textiles as well as nonwoven fabrics for export and domestic foreign-invested companies.

Japanese firm Yuwa has officially launched its second factory in Vietnam. Its first factory was built with $4 million in 2009 and produces molded electronic plastic components. In addition, Yuwa is also scheduled to build a research and development centre in Vietnam to increase production.

More such Japanese investment is expected. Although individual investments will be of average magnitude, as the majority of these enterprises work in the supporting industry and mainly apply advanced technology, they can produce millions of products annually.