Foreign investors scampering for a share in garment industry
A series of foreign direct investment projects in the garment sector will be started in the central region of Vietnam over the next months.
Some of the more outstanding projects include the Delta Galil fiber-dyeing and garment plant, the Onewoo garment plant and the Tam Thang textile-garment and dyeing plant.
Delta Galil Industries Ltd, an Israel-based apparel manufacturer and distributor, is currently completing procedures to start construction of the Vietnam Delta Galil fiber-dyeing and garment plant in the second quarter.
In January, the Binh Dinh Provincial People’s Commiittee approved Delta Galil Industries Ltd to construct a plant on the total area of 18,000 square metres with the total investment capital of $13 million. At present, the construction project has completed the site clearance and base design phases and is ready to move forward.
Upon starting operations, the plant’s annual revenue is expected to reach $11 million over the initial years. Following further consolidation of operational, production and business activities and potential enlargement, this figure is expected to increase to US$30 million, the equivalent of rolling out 1.3 million products a year.
Being a leading global apparel manufacturer and distributor, Delta Galil Industries Ltd currently sells apparel products under famous brands including Wilson, Maidenform and Tommy Hilfiger. It is also selling its products under high-grade fashion brands such as Calvin Klein, Nike, Hugo Boss and Victoria’s Secret.
At the end of March a number of textile and garment projects have been granted investment certificates. Two of these are the Korean-financed Onewoo garment project, boasting the chartered capital of $6 million, and the Tam Thang textile-garment and dyeing project worth $30 million invested by PanKo Tam Thang Company.
Poong Vina Company, another 100 per cent Korean company producing and outsourcing apparel products for the famous brands, such as Ann Taylor, C.W.C, Talbots, has plans to pour $4 million into the construction of their fifth plant in Binh Duong province.
According to the Vietnam Textile and Apparel Association, foreign investors are increasing investment in the Vietnamese garment industry in order to grab opportunities from the Trans-Pacific Partnership (TPP) Agreement as, once the TPP is inked, Vietnam’s garment industry will enjoy large benefits from a zero tax rate when exporting to the US.