Vinatex receives green light for $400 million IP in Nam Dinh

photo source Cafef

The IP is located in the southeast of Nam Dinh, 140 kilometres from Hanoi. Covering an area of 2,109 hectares, including an area of 1,434 hectares for constructing factories and 675 hectares of auxiliary areas, the project has two phases. Construction of the first phase will start in the fourth quarter of this year. By early 2016 investors can start investing in the industrial park. The second phase will start in 2018.

The project is expected to be fully built within six to ten year.

Once completed, the IP will have a capacity to produce two billion metres of fabric per year and employ 60,000 people. It will include a complete supply chain with two environmental friendly and sustainable production zones for textiles and garments, a research and development centre, a logistics zone, an international textile cultural centre with an exhibition centre, international conference centres and five-star hotels to receive and accommodate investors.

Furthermore, the IP will have a thermal power plant, four transformer stations and a high-pressure, 30-metre wide corridor controller and contingency boilers.

“Vietnam is one of world’s biggest apparel suppliers. However, the Vietnamese textile and garment industry in general and in Nam Dinh, in particular, are facing a lack of materials. In 2014, we imported 6.5 billion metres of fabric, equalling 80 per cent of all the fabric used for manufacturing. In this regards, the Rang Dong IP will meet a crucial demand of the Vietnamese textile and garment industry,” said Nguyen Son, vice chairman of the Vietnam Cotton and Spinning Association.

“Besides, the developing large scale industrial park dedicated for integrated textile and garment supply chains will help Vietnam enhance its vertical operations and competitiveness to receive favourable tariffs in most major markets, once the trade agreements have been signed,” he added.