A textile factory with a total investment of US$15 million has officially started construction in Tay Ninh Province, Vietnam. According to news from Tay Ninh Province, Vietnam News Agency, on March 4, Happytext Textile Joint Stock Company held a groundbreaking ceremony for the Happytext Textile Factory project in the Trảng Bàng Industrial Park in Tay Ninh Province.
The construction of a textile factory with a total investment of US$15 million officially started
Vietnamese textile and garment enterprises accelerate recovery
The project has a total area of 25,000 square meters, with an annual output of 20 million square meters of woven fabrics, equivalent to 2000 tons of woven fabrics per year. The total investment in the project is US$15 million. The project construction time is 6 months. All textile products will be exported to countries around the world.
Director of Tay Ninh Provincial Economic Zone Management Committee Ho Van Gong spoke highly of the board of directors of Xingfu Textile Joint Stock Company for its efforts in carrying out the project despite the fact that the economy is facing many difficulties due to the impact of the COVID-19 epidemic. With the high determination of the company’s board of directors and workers, the Happytext textile factory project will surely succeed and make a positive contribution to promoting the economic and social development of Tay Ninh Province.
He Wengong also revealed that since the beginning of the year, a total of 4 investment projects have been introduced in various industrial parks and economic zones in the province. These include a state-owned project with an investment amount of VND37.3 billion and three foreign-invested projects with a total investment of more than US$373 million.
In the first two months of this year, Vietnam’s textile and garment industry has recovered significantly, with exports achieving positive growth. After the Spring Festival, textile and garment companies have accelerated their efforts to implement dual goals on the one hand, and strive to successfully complete the 2021 goal on the other.
After the Spring Festival, Yuesheng Jean Company, which has a total of 1,200 workers, has accelerated preparations for orders in the first and second quarter of this year. With an average annual productivity of 8 million to 10 million products, the company has gradually resumed production and operation activities.
Pham Van Viet, Chairman of Viet Sheng Jean Joint Stock Company, said, “Our company started production on the sixth day of the first lunar month. We are running very well, and the number of workers entering the site has reached 95%. We strive to achieve this year’s set goal, At the same time, preparations have been made for the production plan until June.”
Tran Van Kui, chairman and general manager of Zhonggui Group, said, “I believe that the closed textile and garment production chain will be able to meet the commodity export standards and be a good choice for Vietnam and other countries. The various free trade agreements signed provide services while establishing raw material supply sources that meet international standards, thereby helping textile and apparel companies conquer the demanding market.”
Currently, raw materials are the shortcomings of Vietnam’s textile and apparel industry.
According to the Vietnam Textile and Garment Association, a number of foreign fabric factories will be put into operation in Vietnam in 2021, which is expected to meet 40-50% of Vietnam’s fabric demand. It has laid a good foundation for the textile and apparel industry to achieve its export target of US$39 billion.
Vu Duc Giang, chairman of the Vietnam Textile and Garment Association, said, “Vietnam’s textile and garment industry exports reached US$5.8 billion in the first two months of this year, a year-on-year increase of 4.2%. This figure reflects the tremendous efforts of the Vietnamese textile and garment industry.”
As of February 20, 2021, the total new registered capital, capital increase and share purchase funds of foreign investors reached US$5.46 billion, equivalent to 84.4% of the same period in 2020.
In other words, two months of foreign direct investment in Vietnam in 2021 is equivalent to one year of investment in 2020. The recovery momentum is indeed strong.
The Vietnamese government announced in one breath that with such a strong recovery momentum in building multiple industrial zones, Vietnam’s urgent need for multiple industrial zones has become a top priority.
On March 2, according to the Vietnam News Agency: Deputy Prime Minister Trinh Dinh Dung of the Vietnamese government has just issued Decision No. 276, approving the investment proposal for the No. 1 Huang Mui Industrial Zone in Huang Mui City (county-level city) in Nghe An Province.
Huang Mui Industrial Zone No. 1 covers an area of 264.77 hectares, with a total investment of VND750 billion (approximately US$32.61 million), of which the total owner’s equity is VND225 billion and loan funds are VND525 billion. The project is valid for 50 years.
In addition, the Prime Minister recently issued Decision No. 282 and No. 283, respectively approving Meishun Industry Investment propositions for the district grassroots investment, construction and operation projects and the technical infrastructure investment, construction and operation projects of the Taihe-Lianshan-Lianhe Industrial Zone (Phase 1 Project Area 2).
The grassroots investment, construction and operation project of My Thuan Industrial Zone is located in Mi Loc and Muban counties, Nam Dinh Province. The investor is Dafeng Grassroots Construction Joint Stock Company, with a total investment of 1.62 trillion VND and an area of 158.48 hectares.
The Tai Hoa-Lien Son-Lian Hoa Industrial Zone technical infrastructure investment, construction and operation project is located in Huashan City (county-level city), Lien Son Township and Lian Hoa Township, Lien Son County, Vinh Phuc Province, covering an area of 145.27 hectares, with a total investment of 7748 billion VND, of which Amane Investment Joint Stock Company raised VND 120 billion.
Vietnamese textile and garment enterprises
Making full use of the opportunities brought by the free trade agreement
Although suffered Due to the spread of the new coronavirus epidemic (Covid-19), consumer demand has plummeted, orders have been cancelled, or�. In addition, RCEP provides convenience for textile and apparel companies to easily tap into the benefits of signed agreements and promote production chains in the region.
Le Jin Chang, chairman of Vinatex, believes that the Vietnamese textile and apparel market is expected to return to the level of 2019 by the middle or the end of 2023. Therefore, the 2021-2023 period will be the years that determine whether companies will recover, improve their competitiveness, move to a more sustainable development position, or be left behind and eliminated. Accordingly, this year will be the first year of a critical stage that determines the direction and speed of corporate development.
From the above practices, Vinatex focuses on taking 5 core measures, namely improving the production capacity using the original equipment manufacturer (OEM) model and implementing the entire operating process of the enterprise, especially production-inventory-logistics and other links. Digital transformation, retraining human resources under new conditions, ensuring financial security, aiming to implement long-term development and meet new requirements in the environment and labor services. Continue to take multiple measures to promote the market and shift the export method from OEM processing to FOB (procurement of auxiliary materials-production-shipment) and ODM (design-production-shipment). Actively ensure sufficient supply of input materials, establish chain relationships within the group, and call for investment in weak links in Vietnam’s textile and garment industry.
It can be seen that in addition to the efforts of enterprises, it is very necessary for the Vietnamese government and various departments and institutions to care and assist in strengthening investment and production of raw materials and auxiliary materials that meet the origin principles in FTA. Specific policies should be introduced, including providing development space and stimulating conditions to develop textile and garment auxiliary industries. All localities should support the development of the textile and apparel industry based on the principles of sustainable and clean production, and each company must comply with the practices of the global supply chain. Continue to guide the reduction of non-productive expenses. </p
