Vinatex focuses garment investments on central region
Vinatex focuses garment investments on central region
Leading state-owned textile and garment group Vinatex is scaling up investments into the central region pursuant to the sector’s strategy to relocate factories to localities.
The most recent development was Vinatex general director Tran Quang Nghi’s trip to the central region to check the progress of the group’s investment projects in Nghe An province in line with the textile and garment industry development strategy to 2020 focusing on central locations.
Over the last two years Vinatex member Hanoi Textile Garment JSC (Hanosimex) invested around $33 million into new projects in Nghe An.
Two of the projects went operational in April. The first was a knitwear factory with an annual capacity of 5.1 million items and the other a shuttle-woven garment factory producing 3.6 million units a year.
According to the company’s deputy general director Nguyen Song Hai, Nghe An, Ha Tinh, and Thua Thien-Hue provinces will be Hanosimex’s strategic investment destinations in the coming time.
“The province’s abundant labour forces alongside preferential investment policies and the sector’s commitment to move factories to localities have inspired us to drop anchor in Nghe An,” Hai said.
Apart from accommodating mainstream projects on material production, the central region is also a destination for Vinatex’s capacity building investments.
Vinatex will soon complete the licensing for its Vinatex Bong Son garment plant at an industrial cluster in south-central Binh Dinh province.
The project developer, Vinatex Bong Son Garment Company Limited, was founded recently and the local People’s Committee has agreed in principle to lease land for the project.
The $9.8 million project would include 51 production lines in total, with 17 in the first phase. Its core products would be suits and trousers.
Hanosimex is also busy completing procedures to begin construction of a raw cloth knitwear factory with an annual output of 4,000 tonnes in Nghe An valued at $7.2 million.
Another Vinatex member, Garment Company 10 is nearing completion of its expansion of Ha Quang Garment Enterprise in central Quang Binh which specialises in making shirts for export.
Vinatex statistics show that in the first half of this year the group kicked off construction on 46 investment projects worth $239 million including 14 yarn and fibre, 4 textile, and 20 garment.
Vinatex’s total investments in 2013 is expected to reach $476 million, most of which will go into developing projects in the central region which has advantages such as labour and investment incentives.
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