Chinese groups scale up investment in Vietnam
14/03/2014
Yulun Jiangsu Textile & Garment is to build an eight-hectare fibre, textile and dyeing facility in Nam Dinh province, which will be operational from mid-2016.
Nike and adidas supplier Gain Lucky is investing $140 million in a project in HCM City, Forever Glorious announced plans for a swimwear factory in Dong Nam IZ that will employ 3,550, and a Hong Kong-based investor has submitted plans for a 1,000 hectare textile and garment facility in Nghia Hung.
The TPP – a trade deal involving Vietnam, the US and 10 other countries but not China – is set to conclude by the end of this year. One of the key debates is how much of the apparel manufacture needs to happen in the TTP zone to qualify for zero tariffs, with some countries advocating the ‘cut and sew’ rule (only garment manufacture needs to take place in the zone) while others favour the yarn-forward rule (the whole process from yarn manufacture onwards). Rising wages in China coupled with perceived TPP advantages have led to a number of large Chinese companies investing in Vietnam over the past months.
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