Projects to boost garment industry

A series of projects begun recently will enhance production capacity and help maintain Viet Nam’s position as one of the world’s major garment and textile exporters.

The projects were mainly in developing raw materials like yarn and value-added finished products like suits, the Dau Tu (Investment Review) newspaper said, citing industry insiders.

The raw material issue was a headache for the garment and textile sector, said Tran Van Pho, general deputy director of the Viet Nam National Garment and Textile Group.

Therefore, investing in expanding production of raw material and high quality products was a step in the right direction because it would increase local material content and Viet Nam’s garment and textile products competitiveness, he said.

This would also help the sector develop in a sustainable manner, he added.

One of the major projects to enhance production of raw materials was the VND1.3 trillion (US$63 million) Nam Dan garment and textile cluster project developed by the Ha Noi Textile and Garment Joint Stock Company (Hanosimex) in central Nghe An Province’s Nam Dan District.

The project is divided into two phases. Costing VND850 billion ($41.2 million), the first phase will involve in building support facilities and two fiber factories producing about 300,000 spindles of spun yarn each.

The first phase of the project is expected to be completed in 2013.

With an investment capital of VND500 billion, the second phase will include a factory producing high quality yarn and two garment factories each with an annual capacity of 2.4 million pieces, apart from infrastructure facilities.

nother project has been invested in by the Nha Trang Garment and Textile Joint Stock Co, an affiliate of the Phong Phu Corporation. This factory, estimated to cost VND350 billion ($16.98 million), will be able to produce 40,000 spindles of spun yarn.

Tran Quang Nghi, chairman of Nha Trang Garment and Textile JSC, said they were speeding up construction of the project so that it can be put into operation by the end of this year.

Once put into operation in the central province of Khanh Hoa, the factory will supply polyester and TC yarn (65 per cent polyester, 35 per cent cotton) as well as other high quality threads for domestic consumption and export, he said.

However, local traders told Viet Nam News that, while the new projects were indeed good for the local industry, Viet Nam was far away from being able to substitute imported materials with those that were domestically produced.

The establishment of the Dung Quat refinery would certainly supply raw materials needed to make polyester fibre and yarn, but as of now, 70 per cent of the materials needed by the industry were being imported, and this was unlikely to change significantly in the near future, they said.

They noted that the yarn produced here still had to be exported to other countries to produce quality fabric needed to make garments.

Meanwhile, the Hoa Tho Textile and Garment JSC has started work on the Hoa Tho Veston Plant in central Da Nang City.

The VND86 billion ($4.17 million) plant will be capable of producing 400,000 suits per year, and will be the first deluxe suit manufacturer in the central region.

It is projected to be put into operation by the end of this year and bring more than $10 million in export revenues annually. — VNS

Tags: Vietnam garment exports, Vietnam Garment industry