Foreign hands grab textile market

28-Apr-2012 Intellasia | VIR | 7:05 AM Print This Post

Foreign-backed enterprises are getting the upper hand in textile and garment export, with advantages in capital, technology and governance expertise.

The textile and garment sector is taking the lead among Vietnam’s key export production sectors reaping $3.2 billion in total export value in 2012′s first quarter with 40 per cent of this coming from the foreign-invested sector.

Lifepro Vietnam’s LuxFashion garment production facility will be making big contributions to the export garment sector.

Entering service in late March 2012 as one of the biggest and most technologically advanced garment production facility in Vietnam, the $300 million LuxFashion features a whole integrated production process from materials to end products.

Lifepro Vietnam has procured orders for making specialised uniforms for US firemen, uniforms for combating and security units as well as other sorts of technical uniforms. For instance, its contract signed in principle with US-based Globe Manufacturing Company on supply of US firemen uniforms could bring Vietnam $137 million in export value.

Parallel to LuxFasion, many other foreign projects are operating in Vietnam like VinaKorea, Hansea Vietnam, Kyung Bang and Hansoll Vietnam.

With around 2,000 labourers and 100 per cent products going for export, South Korea-backed VinaKorea in Vinh Phuc province’s Khai Quang Industrial Zone earned several hundred million US dollars from exports a year.

VinaKorea strength leverages on its extensive market network and high-profile customer base which includes famous world brand names like Gap Inc., Wal-Mart, AEO, Li&Fung and A&F. Besides, VinaKorea’s parent company YakJin Trading Corporation, with an expansive system of subsidiaries in countries around the world such as China, Laos, Indonesia, the US and Cambodia, is the company’s valuable support in export promotion.

Another South Korea-backed firm Hansae Vietnam, with one plant in HCM City Tay Bac Industrial Zone and second plant in Tay Ninh province’s Linh Trung III Export Processing Zone, export 60-70 per cent of production per year.

The company is building another plant in Tien Giang province’s Tan Huong Industrial Park with a $30 million investment to be operating in garment export production in a capacity of 30 million products per year.

Vinatex deputy director Le Tien Truong said the foreign-backed firms were an important part in the textile-garment sectors’ export performance in the past years.

Economic experts assumed foreign-backed firms’ operation success could serve as a mirror to local players as under the same circumstances foreign-backed firms could stay healthy and mull investment and business expansion as well as help inspire other firms to jump into Vietnam to do business.

 


Category: Business

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