By Hung Le - The Saigon Times Daily
HCMC – Vietnam National
Textile and Garment Group (Vinatex) will invest in a garment and textile
complex in the central province of Binh Dinh with a closed production
process thanks to a US$600-million loan from Bank for Investment and
Development of Vietnam (BIDV).
As part of
Vinatex’s preparation for Vietnam’s signing of the Trans-Pacific
Partnership (TPP), Vinatex and BIDV inked a cooperation deal on Wednesday
under which the bank will provide a US$600-million credit for the group.
Both sides
had discussed the project before Vinatex asked for approval from Binh Dinh
Province’s government to invest in the garment complex for export and a
supermarket chain to advertise Vietnamese apparel.
The group has
plans to build up a closed industrial complex with many stages such as
material production, weaving and manufacturing. Final products will be used
for export or consumption in the country.
Binh Dinh
will carry out a feasibility study over a material area of around 60,000
hectares. Including neighboring areas, it is estimated to be a total of
100,000 hectares. The group will invest around US$120 million in the
material area to supply around 30,000 tons of fiber.
In addition,
Vinatex has plans to invest US$100 million in a dyeing and knitting factory
with the capacity of 60 million products per year and US$30 million in building
eight to 10 garment plants. The enterprise will also develop a supermarket
chain and direct sales channel in Quy Nhon City and other areas in the
province.
According to
a statement released by BIDV, Binh Dinh Province’s authorities have pledged
to support Vinatex’s projects and arrange land for construction. The
province also has advantages in manpower and traffic infrastructure such as
its airport, railway network and deep-water port.
The
US$600-million loan is divided into a US$250-million short-term credit for
Vinatex to supplement working capital and fund exports and imports and a
US$350-million credit to fund projects of Vinatex and its member units. Of
which, Vinatex will prioritize the industrial complex and supermarket chain
in Binh Dinh.
Given strong
investment in material production to meet TPP standards, the local garment
and textile industry will be able to increase trade surplus, added value
and localization ratio. Local enterprises target to reach a localization
ratio of 60% in 2015 and 70% in 2020.
Vinatex
consists of a parent company and 120 member enterprises operating in
garment and textile, industrial park infrastructure and retail. Vinatex has
trade relationships with over 400 groups and enterprises from 65 nations,
contributing over 20% of Vietnam’s annual apparel export value.
Source from : Saigon Times
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