Vietnam need to selectively consider new foreign textile and garment projects

Vietnam has turn to become an ideal destination for foreign textile & garment investors, especially the Chinese. Pham Chi Lan, a renowned economist warned the local authorities that they should think of restricting the number of textile and garment projects. If there are too many projects in the field and the investors do not fulfill the commitments on environmental protection, a heavy burden will be put on local authorities’ and local residents’ shoulders.

It is very costly to deal with environmental problems, which are unbearable to the local authorities.

An independent analyst noted that there are already “more than enough” textile and garment projects in Vietnam. Vietnam is now not in the period when it needs to attract foreign investors at any cost. It needs to be more selective when choosing investors.

Of the four Chinese-invested textile & garment projects which have been licensed recently, two were in textile and dyeing. They were registered as Thien Nam Sunrise and Yulun Vietnam, with the latter receiving an investment certificate in March 2014.

In addition, the Rang Dong Industrial Zone (IZ) in Nghia Hung district of Nam Dinh province has been added to the national IZ development program. The IZ was developed by two Chinese companies Luenthai and Sanshui Jialida, and Vietnamese Vinatex Investment JSC.

The Binh Duong provincial authorities have received over 200 applications for developing textile & garment projects in the province. This prompted local authorities to build an industrial zone reserved specifically for textile & garment projects.

Bo Ngoc Thu, director of the Dong Nai provincial Planning and Investment Department, said that the local authorities are well aware of the environmental problems, so textiles and garments are listed as a conditional business field, and investors only receive licenses if they can satisfy the requirements on waste water treatment.

Thu said that not all textile & garment projects should be refused, even if there are already many here. If they completely prohibit projects in the field, they will not be able to make many kinds of materials domestically and Vietnamese companies will never be able to increase the locally made ratio of products as they will have to interminably outsource for foreign partners.

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