Textile industry plans to expand in next decade
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Le Tien Truong, Chairman of the Vietnam National Textile and Garment Group (Vinatex) told Tuoi Tre in an interview Vinatex plans to raise US$1.4 billion for expansion in the next decade.
Truong said Vinatex would try to mobilize loans and investments from financial institutions and strategic investors in addition to its own capital to fund the expansion, which will be its largest expansion plan ever.
Truong said even though the local textile and garment industry has seen modest export surplus, it’s still enjoying a high rate of turn, which would attract foreign investors.
“Many equitized firms under Vinatex have a dividend of 20 percent, or even over 40 percent a year,” he said.
Vinatex has also been creating many jobs and contributing to poverty reduction in Vietnam, Truong added.
Yet, Truong admitted that the industry is still facing a great challenge: heavy reliance on imported materials. In the first half of this year for instance, Vinatext import up to US$5.7 billion worth of cotton fiber, fabrics and other materials.
To help solve the problem, Truong said Vinatex just launched the DinhVu – Hai Phong polyester fiber plant in early July to produce as much as 40 percent of the industry’s demand for fiber.
Jointly invested by Vinatex and the Vietnam Oil and Gas Group (PetroVietnam), the $325 million plant is the first of its kind in Vietnam and is expected to produce 175,000 tons of polyester staple fiber (PSF) and filament polyester a year, Truong said.
When the plant reaches its full production capacity in 2012, the industry will be able to save $450 million from not having to import polyester fiber.
Truong said Vinatex has also started new programs to grow fiber plants around the country.
Truong said Vinatex would try to mobilize loans and investments from financial institutions and strategic investors in addition to its own capital to fund the expansion, which will be its largest expansion plan ever.
Truong said even though the local textile and garment industry has seen modest export surplus, it’s still enjoying a high rate of turn, which would attract foreign investors.
“Many equitized firms under Vinatex have a dividend of 20 percent, or even over 40 percent a year,” he said.
Vinatex has also been creating many jobs and contributing to poverty reduction in Vietnam, Truong added.
Yet, Truong admitted that the industry is still facing a great challenge: heavy reliance on imported materials. In the first half of this year for instance, Vinatext import up to US$5.7 billion worth of cotton fiber, fabrics and other materials.
To help solve the problem, Truong said Vinatex just launched the DinhVu – Hai Phong polyester fiber plant in early July to produce as much as 40 percent of the industry’s demand for fiber.
Jointly invested by Vinatex and the Vietnam Oil and Gas Group (PetroVietnam), the $325 million plant is the first of its kind in Vietnam and is expected to produce 175,000 tons of polyester staple fiber (PSF) and filament polyester a year, Truong said.
When the plant reaches its full production capacity in 2012, the industry will be able to save $450 million from not having to import polyester fiber.
Truong said Vinatex has also started new programs to grow fiber plants around the country.
