State management agencies and scientists have voiced their concern over licensing of a series of textile and dyeing projects.
Most recently, the Dong Nai provincial authorities granted an investment license to a textile & garment project registered by Turkish Hyosung Company, the largest project in the field so far, capitalized at $660 million.
In June 2015, the Binh Duong provincial authorities granted license to Polytex Far Eastern, allowing the Taiwanese investor to set up a $274 million textile factory covering an area of 99 hectares in the province.
Cheng Chen Yu, president of Polytex Far Eastern, highly appreciating the investment potential in Vietnam, said the company plans to expand a factory in the second investment stage with estimated capital of $1 billion.
A $300 million project has just been licensed in HCM City. The investor is a Hong Kong-based Worldon Vietnam.
A report by the Foreign Investment Agency showed that of the $11 billion worth of foreign direct investment (FDI) poured into Vietnam so far this year, $3.5 billion went to textile and garment projects.
The investment wave in textile and garment projects began in 2014, when foreign investors heard Vietnam was going to sign the Trans Pacific Partnership Agreement (TPP).
The Chinese Texhong Group registered a $215 million project. Hong Kong[based TAL Group registered to develop a $600 million textile and garment complex in Dai An Industrial Zone in Hai Duong province, whiel Chinese Yulun plans to set up a $68 million.
The investments in the textile and garment industry have been increasing so sharply that this has raised concern.
The Ministry of Planning and Investment (MPI) has warned against the increase of textile and garment complexes, which could be a threat to the environment. It has also warned about the capability of providing accommodations to workers, and the import of outdated energy consuming technologies.
The ministry has asked local authorities to examine projects thoroughly before licensing to be sure that the projects can satisfy the requirements on the occupancy rate in industrial zones, and the technological and environmental standards.
Minister of Science and Technology Nguyen Quan confirmed that his ministry has received much information about foreign investors, especially Chinese, intending to pour huge capital into textile and dyeing projects in Vietnam.
His viewpoint is that state management agencies need to be cautious when considering the projects, especially in terms of technology and environment.
Many provinces in Vietnam now don’t welcome textile and dyeing projects. Da Nang, for example, has refused a $200 million plant suggested by a Hong Kong investor. HCM City, Dong Nai and Binh Duong have also decided to say ‘no’ to the projects with high environmental risks.
Source: vietnamnet.vn