Vietnam Licenses 18 FDI Projects in Garment, Textile Sector in Jan-April
Vietnam granted investment licenses to 18 FDI projects, totaling $20 million, in the garment and textile sector between January and April.
Nearly half of 2,000 garment and textile companies in Vietnam are foreign-directed ones, mainly from Taiwan and South Korea.
More foreign investors paid due attention to the industry in recent months thanks to low labor costs and skilled workers in Vietnam.
However, the increase of FDI enterprises in the garment and textile industry poses challenges for domestic producers, the agency cited Pham Xuan Hong, deputy chairman of the Vietnam Textile and Apparel Association (Vitas) as saying.
While certain incentives are offered to FDI companies, these are not to be given to local ones, Vitas official said.
Hong added that actual earnings from garment and textile exports are low compared to other industries because the sector considerably depends on outsourcing.
Named among the country’s export staples, the apparel sector expects an on-year export growth of 12% to $10.5 billion and to become the world’s top textile and garment exporter this year. (VNS)
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