Vinatex signs for loan package with BIDV to bring improvement in textile sector this year

The Vietnam National Textile and Garment Group (Vinatex) has entered into an agreement with the Bank for Investment and Development of Vietnam (BIDV), under the agreement signed BIDV will lend US$600 million to Vinatex in the period from 2014 to 2016. The loan package is signed to improve the textile firm production efficiency, invest in more projects, and upgrade their manufacturing technology.

Vinatex has plans to spend over VND4 trillion ($190 million) into numerous projects including fiber, textile, garment, and cotton farms this year. It will also include some prioritized projects that can dye 12-40 million meters of cloth per year.

Vinatex will also be investing around VND2.2 trillion ($105 million) in a complex which comprises a fiber – textile – garment manufacturing mill, a water supply facility, a wastewater treatment plant, and accommodations for textile workers.

Vinatex in cooperation with two Chinese companies is also planning to set up textile industrial park in 1,500 hectare area in the northern province of Nam Dihn by the end of 2014. The $400 million project is expected to be the biggest textile industrial zone in the country, will be attract a number of investors in the fields of dyeing, leather, garment, and textiles from mainland China, Hong Kong, and Taiwan. It will also generate 160,00 jobs according to the portal of the Ministry of Planning and Investment.

The industrial park will help create an industrial production value of $3-4 billion each year.

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