|Analysts estimate that once Viet Nam becomes a TPP member the average tax on Vietnamese garments will fall from the current 17 or 18 per cent to zero. — Photo cafef.vn
QUANG NAM (VNS) — The central province of Quang Nam is welcoming an inflow of investment capital into the garment and textile sector.
Seven out of 12 newly licensed projects are from the sector, Cong Thuong (Industry and Trade) newspaper reported.
The most prominent project was a fiber-weaving-dying and garment complex worth VND1.2 trillion (US$55.5 million). The complex is being developed by the Viet Nam National Textile and Garment Group in Que Son District. It is slated for completion within two years and expected to earn VND2 trillion ($92.59 million) annually.
Other projects include a $30-million textile-garment-dyeing factory financed by the South-Korea-invested Panko Tam Thang Co; Korea's Onewoo garment manufacturing plant capitalized at $6 million; and a Taiwanese apparel factory valued at $4 million in Thuan Yen Industrial Zone.
Vo Van Hung, head of the Investment Promotion and Enterprises Support Agency of Quang Nam Province, said many domestic enterprise delegations and foreign firms coming from South Korea, China and Taiwan have visited the province to seek investment opportunities in the textile and garment industry.
A dozen investment agreements on developing textile and garment projects were inked between the agency and these foreign investors, Hung said.
According to analysts, the new investment inflow into the garment and textile industry is predictable, as both domestic and international firms seek to take advantage of the benefits Viet Nam will potentially derive when the Trans-Pacific Partnership Agreement is signed.
Several companies from China, Hong Kong, Taiwan, Japan, the US and South Korea have made large investments in the sector, according to Thoi Bao Tai Chinh (Finance Times) newspaper.
The textile and garment industry in TPP member countries is expected to benefit the most from the trade deal. For instance, products made from domestically sourced materials or imported from other TPP member countries will not face tariffs when exported to signatory countries.
Le Tien Truong, vice chairman of the Viet Nam Textile and Apparel Association, said up to 60 per cent of the country's textile and garment exports go to member countries.
Analysts estimate that once Viet Nam becomes a TPP member the average tax on Vietnamese garments will fall from the current 17 or 18 per cent to zero. — VNS