Inflows from the United States continue to flow into Vietnam to prepare for opportunities brought about by the Trans-Pacific Partnership (TPP) agreement. Numerous projects have invested or about to invest in Vietnam.
Representative of Huntsman Textile Effects Group also made the comment that, the fields of chemicals, dyes have good room for development in Vietnam in the coming years. When TPP takes effect, investment in manufacturing yarns, fabrics will increase.
The assessment of Huntsman Textile Effects completely coincides when looking at the way of foreign investment in Vietnam’s textile and garment sector in recent years.
Data of Vietnam Textile and Garment Association (Vitas) show that, by the end of 2015, foreign direct investment (FDI) into Vietnam’s textile and garment industry reached almost $2 billion. This is a record high capital ever.
As per the forecast of the American Chamber of Commerce (Amcham), not to mention the impact of TPP, Vietnam’s export turnover to the US may reach $51.4 billion in 2020, of which textile and garment is $15.2 billion. Amcham estimates, by 2025, textile exports to the US will reach $20 billion.
Inflows from the US continue to flow into Vietnam to prepare for the opportunities brought about by TPP. Numerous huge projects have invested or prepare to invest in Vietnam.
Right in January 2016, Avery Dennison RBIs under Avery Dennison Group, the US that specialises in stamp labels, packages, decorative accessories for the footwear and garment industry officially inaugurated the factory in Long Hau industrial zone (Long An province) with a total investment of $30 million.
Information from this group shows that, the plant will provide solutions on labels, meeting the growing demand of famous brands that are operating in Vietnam market. Of which, Avery Dennison RBIS will produce clothes labels for such brands as Uniqlo or North Face, Nike, Adidas, etc.
The new plant is designed modern, applying the production techniques of packages, labels, decorative accessories in all materials of international standards by Avery Dennison Group.
As per Deon Stander, vice President cum CEO of Avery Dennison RBIs, the investment in the factory in Long An proves Avery Dennison’s development commitment with Vietnam textile and garment industry as well as customers in this market.
The new facility in Long An will help Avery Dennison RBIs improve production capacity of heat transfer labels and serve customers more quickly, more effectively meeting the demand of world leading brands and retailers.
“TPP will make many textile and garment companies to increase production in Vietnam. The more they come, the more favourable in doing business Avery Dennison RBIs are. Accordingly, the factory in Long An will allow Avery Dennison to grow till 2020″, said the representative of the investor coming from the US.
The move to expand investment of Avery Dennison RBIs in Vietnam’s textile auxiliary sector is quite blizzard when seeing that the signal on TPP tends to be smooth in negotiations and may come to conclusion. Earlier, in July 2015, Avery Dennison RBIS opened Product Distribution Centre in Binh Tan district (HCM City), while conducting the construction of a factory in Long An also at this time.
Nguyen Son, Chair of Vietnam Cotton and Spinning Association said that, the demand for using raw materials of the domestic garment industry is increasingly large when the scale of the textile and garment industry has increased in recent years.
Vietnam has not produced chemicals, labels, etc., so annual expenditure for importing these items amount to billions of US dollars. Clearly, FDI into Vietnam at the segment that is short and weak will have a great opportunity to promote production and business.
Son also said, investors in Vietnam’s garment and footwear accessories sector will have many opportunities to develop because the room for this sector is very large.
Source: Bao Dau Tu
Key words: US, businesses, pour capital, Vietnam textile and garment sector
