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By
Fibre2Fashion
Published
Mar 25, 2016
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FDI inflow high in Vietnam textile sector

By
Fibre2Fashion
Published
Mar 25, 2016


Owing to the potential advantage enjoyed by Vietnam in the Trans-Pacific Partnership (TPP) pact, foreign direct investments (FDI) are pouring into the country’s textile and garment sector on a large scale from countries like the US, China and others, according to media reports.




The FDI inflow into Vietnam’s textile and garment manufacturing sector reached $2 billion by the end of 2015, a record number till date, according to the Vietnam Textile Association (VITAS).

Vietnam has seen a large inflow of investments from US companies like Huntsman Group, Avery Dennison, etc in recent years. Textile and garment manufacturers in the country manufacture for the US brands like North Face, Adidas, Nike, etc.

Chinese textile and garment investors have also been active in investing in Vietnam to benefit from the ‘yarn forward rule’ in TPP, cheap labour and natural resources. The country ranked third in terms of FDI to Vietnam in January 2016.

Japanese companies Kuraray Trading, Itochu, Toray Industries and Shikibo have been investing in setting up production units in Vietnam. Many big foreign-invested projects were licensed in 2015. Other countries like South Korea and Taiwan are also investing in the country to reap the fruits of TPP.

Last year, Vietnam received approximately $25 billion FDI, which represented a rise of around 13 per cent year-on-year. A continuous flow of FDI into the country is expected in 2016, and the textile and garment and related industries are expected to bag a large chunk of the pie.

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