Project will provide a clean land source of 24.8 ha for villas, parks and other facilities.
The Nam Dinh Textile and Garment Urban Development Co. under the Vietnam National Textile and Garment Group (Vinatex) has begun construction of the Nam Dinh Textile Urban Area, with total investment of over VND410 billion ($18.45 million).
The urban area is being built on an existing site that currently houses textile, garment, yarn and sewing plants belonging to the Nam Dinh Textile and Garment JS Corp, which will be relocated.
The project covers an area of 24.8 ha and will be built in three phases. The first will take two years and include modern infrastructure, parks, and car parking, costing an expected VND130.9 billion ($5.89 million).
In the second phase, two textile plants will be relocated to build technical infrastructure and a school, costing VND130.1 billion ($5.85 million).
In the third phase the remaining garment, yarn, and sewing plants and an office area on 10.5 ha will be relocated to build remaining facilities for the urban area. This phase will cost an expected VND151.9 billion ($6.83 million).
The project is expected to be completed in 2021, creating a clean land area for about 936 villa plots, 20,076 sq m of green parks and sports areas, 16,314 sq m of commercial land and 34,748 sq m for services, education and healthcare, with comprehensive technical infrastructure.
Mr. Le Tien Truong, CEO of Vinatex, said the project will meet the standards of a Grade 1 urban area and be in accordance with the urban planning of Nam Dinh province. Upon completion, Nam Dinh province will have a large and modern urban area and the Nam Dinh Textile and Garment JS Corp. will have a wider area to increase production scale after relocation.
Textile, garment and yarn production will remain in the city for three to four years to ensure employment for 4,000 workers before moving into the new area.
The Nam Dinh Textile and Garment JS Corp. is a high-performance unit and has made major contributions to the development of Vietnam’s textile and garment industry.
In its 100 years the company has made many changes but continued to be a major contributor to the province’s economic development, attracting and creating jobs for many workers.
Vinatex held its annual general meeting on June 14, announcing targets in export turnover of $2.6 billion for this year, representing growth of 10 per cent.
The group also aims to develop the original equipment manufacturer (ODM) - free-on-board (FOB) model as a breakthrough measure in increasing its competitiveness domestically and with textile exporters in other countries such as China, India, and Bangladesh.
Vinatex has now 85,000 employees earning an average monthly income of VND6.3 million ($284). Last year its industrial production value stood at over VND36 trillion ($1.62 billion), revenue VND39.5 trillion ($1.77 billion), and pre-tax profit VND628 billion ($28.2 million).