Textile group to conduct 30 projects over 2015-2017 as part of expansion plans.
The Vietnam Textile and Garment Group (Vinatex) plans to expand during the 2015-2017 period by conducting 30 major projects, including ten thread production projects, eleven weaving projects, and nine sewing projects, with the aim of establishing a full production chain.
It intends to establish five separate chains, including the Hanosimex - Dong Xuan knitting chain in northern Hung Yen province, the Nam Dinh weaving chain in the north, another weaving chain in the central region, and two knitting chains in the south. In 2015-2016 it will invest in 18 projects with total investment capital of VND9 trillion ($430 million).
According to Mr. Cao Huu Hieu, Head of the Investment Department at Vinatex, the establishment of the production chains will create the conditions necessary for its subsidiaries to support each other and promote production efficiency. He added that with this plan Vinatex aims to raise total capacity to 100 million meters, 40 per cent higher than its existing capacity.
Vietnam’s free trade agreements (FTAs) with the Customs Union of Russia, the EU, and South Korea, as well as the TPP, create a great many opportunities for the country’s textile industry to develop and attract foreign partners.
The industry aims to export VND28.5 billion ($1.33 million) worth of goods in 2015, 15.9 per cent more than last year, with exports to the US expected to reach $11 billion, Japan $2.9 billion, the EU $4 billion, and South Korea $2.8 billion.
Vinatex is one of Vietnam’s largest groups and a major player in the country’s textile industry. It consists of over 50 joint stock companies and 40 joint venture companies, principally involved in manufacture and also fashion magazines, fashion design institutes, textile industry vocational schools, universities, real estate, and supermarkets.