- Vietnam expects high-quality FDI inflows after CPTPP ratification
- CPTPP expected to help Vietnam modernise labour laws
- National Assembly passes resolution approving CPTPP, related documents
“North America and Japan have been our key export markets in recent years, accounting for 40% of export turnover. We have a huge opportunity in textiles and garments after Vietnam joins the CPTPP,” Nguyen Chi Thanh, deputy general director of the French group Scavi JSC, was quoted as saying to Dau Tu (Vietnam Investment Review) newspaper.
The company has proposed building the Phong Dien garment and textile supporting industrial zone in the central province of Thua Thien Hue to attract investment. It opened its fourth factory earlier this year.
“We have met with 30 domestic and foreign material suppliers to discuss incentives and how to attract investment to the supporting industrial zone,” he said. “This move will help Scavi achieve its goal of becoming one of the world’s top enterprises in lingerie, swimwear and sportswear by 2022, with annual revenue of US$200 million.”
Another giant in the industry, South Korean-based Hyosung Corporation, is preparing to expand its operations in Vietnam.
The corporation has already invested US$1.5 billion in the southern province of Dong Nai and plans to expand its fibre manufacturing projects.
“We would like to invest more at the Dong Nai-based Nhon Trach 5 Industrial Zone but local authorities have rejected us because there is no more available land,” said managing director Yoo Sun Hyung.
Another the Republic of Korea-based Hi Knit Company Limited was recently granted an investment licence at the Nhon Trach 6A Industrial Zone with total registered capital of US$40 million.
The company will produce textiles and nonwoven fabric for export.
Industries to benefit from CPTPP
The textile and garment industry will not be the only sector to benefit when Vietnam officially joins the CPTPP, as aquaculture, timber manufacturing, logistics, real estate and agriculture also see bright prospects.
Feed manufacturers Cargill and CJ have been opening factories in the southern region.
The largest Cargill factory, with total capital of US$28 million, is located on a land area of 48,000sq.m. It will produce 240,000 tonnes of hog and poultry feed annually.
Meanwhile, numerous FDI enterprises in other sectors are completing investment procedures to start projects.
For example, in Dong Nai Province, Taiwanese group Kenda has extended its production with an additional US$56 million for its factory in Giang Dien Industrial Zone to increase its tyre manufacturing capacity for domestic and export markets.
The southern province of Binh Duong recently granted a licence to Taiwan-based Vietnam Waytex International Company Limited for its US$25 million furniture manufacturing project in Bau Bang Industrial Zone.
In mid-November, Japanese firm Yuwa Vietnam Company Limited officially launched its second factory on a land area of 2.2ha in this province’s VSIP II.
Its first factory, also in Binh Duong, was built with US$4 million in 2009 and produces moulded electronic plastic components.
“More and more Japanese enterprises will continue investing in the southern region to take advantage of CPTPP,” said Kadowaki Keiichi, the president of the Japanese Business Association in HCM City.
