Foreign investors have poured 19.5 billion USD into Vietnam’s textile and garment industry over the last 30 years (Photo: VNA)Hanoi (VNA) – Foreign direct investment inflows into Vietnam’s textile and garment industry mounted to 19.5 billion USDover the last three decades with the Republic of Korea (RoK) being the top investor.
Koreaninvestors have injected roughly 4.8 billion USD to 464 projects in the sector.It is followed by Taiwan with nearly 3 billion and 132 projects, Hong Kong (2.4billion USD, 147 projects), China (2.1 billion USD, 197 projects), and British Virgin Islands (1.6 billion USD,70 projects).
Major garment-textileproducers from the RoK, Taiwan, Japan and other countries andterritories have helped the domesticindustry join in globalsupply chains and expandforeign markets, particularly the US and the EU, said Vu Duc Giang, Chairman of the VietnamTextile and Apparel Association (VITAS).
FDI firms haveplayed an important part inboosting the sector’s production capacity and exports. Last year, Vietnam’s garment-textile exportsgrew by 16.1 percent from a year earlier to over 36 billion USD, 65 percent ofwhich came from FDI companies.
The signing ofthe Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) and Vietnam’s free trade agreements with the EU and Eurasian EconomicUnion (EAEU), which promise to cut taxes and further open market access tomembers, is exptected to pave the way for more FDI to land in the industry.
FDI should beprioritised in material producing projects to make Vietnam less dependent onimports./.
VNA
