FDI flow into garment and textile sector bounces back
The Vietnamese garment and textile industry is experiencing a significant increase in foreign direct investment (FDI) due to favorable investment conditions, a large workforce, and open economic policies. This surge in foreign capital has not only stimulated the industry’s growth but also spurred innovation and competitiveness, presenting opportunities for logistics companies, freight services, cargo logistics, and international shipping firms.
Vu Duc Giang, Chairman of the Vietnam Textile & Apparel Association (VITAS), notes that foreign garment and textile producers are actively expanding operations in Vietnam to leverage strategic advantages. Vietnam’s involvement in various free trade agreements, such as the CPTPP, EVFTA, and RCEP, has attracted both domestic and foreign investors, benefiting freight and logistics sectors, further demonstrating the effectiveness of shipping company logistics in promoting international trade.
Workers of Dony Garment Company in HCM City’s Bình Chánh District. VNA/VNS Photo Hồng Đạt
An example of this trend is the recent approval of an investment certificate for Crystal International Group’s Yi Da Denim Mill project in Nam Dinh province. This Hong Kong-based company, already operates multiple plants across northern and southern provinces, contributing significantly to export revenue and local employment.
YKK Corp., the world’s leading zipper producer, has also strengthened its presence in Vietnam by investing in a second plant in Ha Nam province. Over 25 years, YKK has seen substantial productivity and workforce growth, making its Vietnamese plant self-sufficient and capable of exporting products to neighboring countries.
FDI has extended to Thanh Hoa province, where SAB Industrial Vietnam Company Limited, a subsidiary of China’s Weixing group, recently launched a factory producing various zipper-related products, requiring freight and shipping services.
Beyond enhancing production, FDI has reduced the sector’s reliance on imported materials, streamlined processes, and cut transport costs, enhancing product competitiveness domestically and internationally.
In the first quarter of 2024, Vietnam earned nearly 8 billion USD from garment and textile exports, with FDI firms contributing over 60% of total revenue. This underscores FDI’s significant role in driving Vietnam’s garment and textile sector, positioning it as a key player in economic development and creating opportunities across the logistics and shipping sectors.