Vietnam’s Garment-Textile Industry Sees Surge In FDI Inflows
Vietnam has attracted 3,500 foreign direct investment (FDI) projects in the garment-textile sector, valued at a combined US$37 billion, according to the Vietnam Textile and Apparel Association (VITAS). The FDI sector plays a pivotal role in the industry’s growth, contributing 65% of total export turnover.
VITAS reports a surge in FDI inflows, with numerous global corporations investing in modern factories. Key investors include Republic of Korea (RoK), China, Japan, India and Taiwan (China). In late September, Singapore’s Sanbang Co. Ltd. commenced construction of a plant for towels, fabrics and DTY yarn in Nam Dinh’s Rang Dong Textile Industry Park, with an investment of nearly US$30 million. The plant, spanning over 103,000 square metres, is expected to be operational by late 2025, creating numerous jobs for local workers.
Other major projects in the pipeline include a US$203 million textile dyeing factory by Japan’s Toray Group and a VND1.47 trillion (US$60 million) denim mill by Hong Kong’s Crystal International Group Ltd. Additionally, in March, SAB Industrial (Vietnam) Company Ltd of Weixing Group launched a US$6 million plant producing clothing accessories in Thanh Hoa.
Vietnam’s participation in free trade agreements (FTAs), such as Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), EU-Vietnam FTA (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP), has helped expand export markets for its textile and garment products.
VITAS General Secretary Truong Van Cam credits international integration and effective FDI attraction strategies for boosting the industry’s production capacity and export potential. Experts emphasize the need to strengthen linkages between FDI and domestic enterprises and establish technical standards on environmental protection and energy efficiency for sustainable development.
As the world’s third-largest textile exporter, after China and Bangladesh, Vietnam’s positive 2024 outlook suggests export turnover could surpass the US$ 44 billion target for this year.
