The garment and textile industry in Vietnam has launched 3,500 FDI-funded projects worth $37 billion, as per a report by the Vietnam Textile and Apparel Association. With FDI accounting for 65 per cent of the country’s garment and textile industry’s export turnover, Vietnam is attracting large corporations from China, Japan, India, South Korea, and Taiwan (China) to build modern factories in Vietnam.

One of these projects being initiated includes a production unit for manufacturing towels, fabrics and DTY yarn at Rang Dong Textile Industry Park. Initiated by the Singapore-based Sanbang Company, the 103,000 sq m factory is being built with an investment of $30 million. It is scheduled to be operational by Q4, FY25 and will produce 15,000 tons of towels, 14 million meters of woven fabric and 15,000 tons of DTY yarn annually. 

According to a representative from the Sanbang Company, this project is slated to create jobs for local farmers shifting from agriculture to industry. The park will also house a $203-million textile dyeing factory being built by the Japan-based Toray Group.

ReGal Vietnam Textile Company also plans to build a $20 million factory at the Hoa Phu Industrial Park, Dak Lak province.

The 3-hectare Hong Kong-funded factory will create employment opportunities for 800 workers, says, Ding Feng, Director, ReGal Group. The group aims to move some of its factories from China to the Hoa Phu Industrial Park in order to create more jobs for local workers and offer a better allowance to the company’s partners. 

According to the Vietnam Textile and Apparel Association, with its 100-million-people market, high-quality human resources, and open investment attraction policies, Vietnam's garment and textile industry is witnessing a huge rise in foreign direct investments. The country is also expanding the export markets for its products by entering into many FTAs.