The footwear industry is also one of the sectors which will benefit when Vietnam officially joins the CPTPP. (Photo: sggp.org.vn) HCM City (VNS/VNA) - Foreign-invested companies in the southernregion are speeding up investments and preparing for opportunities as Vietnamis poised to join the Comprehensive and Progressive Agreement for Tran-PacificPartnership (CPTPP).
“North America and Japan have been our key export markets in recent years,accounting for 40 percent of export turnover. We have a huge opportunity intextiles and garments after Vietnam joined the CPTPP,” Nguyen Chi Thanh, deputygeneral director of the French group Scavi JSC, told Dau Tu (Vietnam InvestmentReview) newspaper.
The company has proposed building the Phong Dien garment and textile supportingindustrial zone in the central province of Thua Thien – Hue to attractinvestment. It opened its fourth factory earlier this year.
“We have met with 30 domestic and foreign material suppliers to discussincentives and how to attract investment to the supporting industrial zone,” hesaid. “This move will help Scavi achieve its goal of becoming one of theworld’s top enterprises in lingerie, swimwear and sportswear by 2022, withannual revenue of 200 million USD.”
Another giant in the industry, the Republic of Korea-based HyosungCorporation, is preparing to expand its operations in Vietnam.
The corporation has already invested 1.5 billion USD in the southern provinceof Dong Nai and plans to expand its fibre manufacturing projects.
“We would like to invest more at the Dong Nai-based Nhon Trach 5 IndustrialZone but local authorities have rejected us because there is no more availableland,” said managing director Yoo Sun Hyung.
Another RoK-based Hi Knit Company Limited was recently granted an investmentlicence at the Nhon Trach 6A Industrial Zone with total registered capital of 40million USD.
The company will produce textiles and non-woven fabric for export.
The textile and garment industry will not be the only sector to benefit when Vietnamofficially 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 southernregion.
The largest Cargill factory, with total capital of 28 million USD, is locatedon a land area of 48,000sq.m. It will produce 240,000 tonnes of hog and poultryfeed annually.
Meanwhile, numerous FDI enterprises in other sectors are completing investmentprocedures to start projects.
For example, in Dong Nai province, Taiwanese group Kenda has extended itsproduction with an additional 56 million USD for its factory in Giang Dien IndustrialZone to increase its tyre manufacturing capacity for domestic and exportmarkets.
The southern province of Binh Duong recently granted a licence to Taiwan-based VietnamWaytex International Company Limited for its 25 million USD furnituremanufacturing project in Bau Bnag Industrial Zone.
In mid-November, Japanese firm Yuwa Vietnam Company Limited officially launchedits 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 4 million USD in 2009 andproduces moulded electronic plastic components.
“More and more Japanese enterprises will continue investing in the southernregion to take advantage of CPTPP,” said Kadowaki Keiichi, the president of theJapanese Business Association in HCM City.-VNS/VNA
VNA
