Vietnam as new destination of Chinese garment, textile companies

Vietnam is seen as a new destination of Chinese garment and textile investment as since the end of 2013, up to 90 percent of businesses taking part in investment in the sector have come from China, local media reported. In early March this year, northern Nam Dinh province issued investment license for Jiangsu Yulun Textile Group to build a factory of fabric, textile, dying with total registered capital of 68 million U.S. dollars, said Bao Cong Thuong (Industry and Trade News), an online newspaper under the ministry of industry and trade (MoIT) on Thursday. Two others including China's Hong Kong Luenthai Holdings and China's Sanshui Jialida Textile Company are promoting investment activities in Nam Dinh province with total capital of nearly 400 million U.S. dollars. Three other Chinese investors pledge to start their business in southern Ho Chi Minh City. Pham Chi Lan, economist, was quoted by the Industry and Trade News on Thursday as saying that Vietnam welcomes Chinese companies to invest in garment and textile sector with modern technologies, not only bringing in economic efficiency but also meeting with standards of environment protection. The garment and textile industry has achieved significant success in the first quarter of 2014 and its outlook for the whole year is optimistic, the MoIT was quoted by local Vietnam News daily on Thursday. Accordingly, Vietnam's garment and textile sector has yielded the highest growth rate of 20.2 percent in the first three months while the average increase in the country's industrial production index during January-February period stood at only 4.9 percent, said the ministry. In the first quarter, Vietnam's garment, textile export revenue surged 21.9 percent to hit 4.5 billion U.S. dollars, said Vietnam' s General Statistics Office. In March alone, Vietnam pocketed 1.6 billion U.S. dollars from exporting garment, textile products, up 46.88 percent over the previous month, said the office.