The Phu Hung textile plant, being constructed in Phu Bai Industrial Park, in Vietnam’s central province of Thua Thien-Hue, will commence operations in August this year, reports Viet Nam News.
The Vietnam National Textile and Garment Group (Vinatex) has invested 258 billion dong (US$ 12.2 million) for the construction of the textile plant.
Once operational, the textile plant will employ 200 persons, and will have capacity to produce about 240 tons of cotton yarn per month.
Some of the products manufactured at the new textile mill are expected to be exported to Taiwan and Turkey.
The setting up of the new spinning plant is part of the company’s strategy to invest in raw material production for its garment sector, in light of the expected trans-pacific partnership (TPP) and other agreements, which follow yarn-forward principle for eligibility of garments to avail duty-free facility.
Vietnam may sign a free trade agreement (FTA) with the European Union this year, which would provide many advantages for Vietnam’s export products, especially textiles. There is also a possibility of Vietnam signing a FTA with the Customs Union of Russia, Belarus and Kazakhstan.
In 2013, Vinatex’s export turnover reached $2.9 billion, and the company is striving to achieve export turnover of $5 billion by 2020.
