HCMC – The authorities of HCMC have urged the industrial parks (IPs) to attract major projects in the textile and garment sector despite the city’s restrictions on labor-intensive projects.
Tran Viet Ha, head of the Investment Management Department of the HCMC Export Processing and Industrial Zones Authority (Hepza), explained the world’s apparel industry is forecast to grow strongly.
The Trans-Pacific Partnership (TPP) agreement could be concluded this year, offering great opportunities for companies in the industry to benefit from zero tariffs on apparel exports to TPP member countries.
Projects in the textile and garment sector need a lot of labor but experts said as apparel is a major export earner of Vietnam, it is one of the countries to benefit most from the opportunities to be brought by the multilateral trade pact.
Therefore, Ha said some IPs such as Hiep Phuoc and Dong Nam have opened their doors to apparel projects, Ha told the Daily on the sidelines of a recent meeting of Hepza in the city.
Ha said projects in the textile and garment sector licensed by Hepza produce luxury items and use modern technology.
Among the apparel projects licensed in the past year is Worldon Vietnam Ltd. Co. in Dong Nam IP. It has recently increased its pledged investment to US$300 million from US$140 million.
Ha said the Worldon Vietnam project, which also has a design center, makes products for world-known brands such as Nike, Adidas and Puma. The investor needs an area of 52 hectares and 7,000-8,000 employees.
Forever Glorious of Taiwan’s Sheico Group has pledged US$50 million for a project to produce almost everything from fiber to finished garments, with a work force of more than 3,500 people at Dong Nam IP.
Last year, the IPs and export processing zones (EPZs) in the city saw a year-on-year fall of a slight 4.39% in foreign direct investment (FDI) approvals at US$347.5 million thanks to large-scale apparel projects.