US businesses pour huge investment into garment

According to latest statistics from the Vietnam Textile and Apparel Association (Vitas), foreign direct investment (FDI) into the garment sector hit US$2 billion by the end of last year, the highest figure so far.

The American Chamber of Commerce (AmCham) forecast that Vietnam’s exports to the US may reach US$51.4 billion by 2020, including US$15.2 billion from garment.

Paul G. Hulme, President of Huntsman Textile Effects said, its warehouse at Long Binh Industrial Zone in Dong Nai province operated at its full capacity after six months being put into operation. It now supplies dye and chemicals used in the garment sector.

Huntsman Textile Effects planned to expand its investment in Vietnam, Mr Hulme said.

Early this year, a series of US projects were invested in Vietnam. For example, Avery Dennison RBIS inaugurated a factory to produce packing and materials for the garment and footwear industry in Long An province.

Nguyen Son, President of the Vietnam Cotton and Spinning Association, said the garment industry has increasing demand for materials as domestic businesses have not been able to produce chemicals and labels yet. Every year they had spent billions of US dollars on importing these materials. This provides a good opportunity for foreign investors.