Thai Apparel Investors May Head to Vietnam on Lower Production Cost

Thailand’s Office of Industrial Economics are encouraging the country’s businesses to pour investments into Vietnam apparel sector on the ground of lower production cost and stable investment climate, local media reported.

 

Production cost in Vietnam is estimated at 19.5 per cent lower than that in Thailand, the office noted, attributing to cheap labor and investment promoting incentives.

 

Currently, Vietnam has removed import tax on raw material for apparel businesses.

 

Vietnam’s WTO official membership, lucrative investment climate and other comparative advantages have been making the country into a more reliable destination than other regional nations, a market expert said.

 

Thailand has to date poured US$1.54 billion into 53 projects in Vietnam, holding the third position among ASEAN countries and the 12th out of 79 countries and territories directly investing in the country, according to latest statistics of the Vietnamese Ministry of Planning and Investment. (People’s Army)