Nam Dinh tailor-made for South Korean clothing giant

The $53.2-million Youngone Nam Dinh Company, wholly-owned by the South Korean Youngone Corporation, has become the largest foreign direct investment (FDI) project in Nam Dinh province.
With legal capital of $16 million, greater than the province’s total committed FDI before the licence was issued over a week ago, the project will produce knitting and dying garment and textile products, fabrics, footwear and materials for the textile and footwear industries. Roughly 90 per cent of the project’s products will be exported, according to the project plan.
“The Vietnamese government and the Ministry of Planning and Investment greatly appreciate the project and the Youngone Corporation’s interest in Nam Dinh,” Deputy Minister of Planning and Investment Nguyen Bich Dat said.
“The project is in accordance with Vietnam’s policy on promoting foreign investment in light industry, since its emphasis is on material production for the apparel, textile and footwear industries and has a very high export ratio,” he said.
“If successfully implemented, the project will contribute greatly to the development of Vietnam’s garment and textile industry in general and light industry in Nam Dinh in particular.”
Dat said Youngone Nam Dinh Company was expected to promote local economic and labour restructuring and strengthen ties between Vietnam’s garment and textile manufacturers. He said it was for these reasons that the government had provided the project with top incentives concerning tax and land rent.
However, Dat said, licensing was just the first step.
“To help the project be implemented quickly and grow steadily, we request that the most favourable conditions be provided by the provincial people’s committee. This will be in line with Prime Minister Phan Van Khai’s repeated proclamation that ‘investors’ success is our success’.”
He said the success of the Youngone project would attract other foreign investors, particularly those from South Korea, to Nam Dinh.
A recent survey of 200 textile companies conducted by the South Korean textile federation and quoted by the official Yonhap news agency found that 20 per cent of companies surveyed wanted to move their production to Vietnam.
Nam Dinh authorities have hailed the efforts of the South Korean investor, which have resulted in the new FDI landmark, claiming the investment is well placed given the long local tradition of textile production.
“We hope the investor will initiate the project rapidly,” said provincial People’s Committee vice chairman Nguyen The Khanh. “Any problems that arise should be promptly reported to provincial authorities.”
He said Nam Dinh expected to see the project come into operation six months to a year after the start of construction.
“Nam Dinh authorities are determined to assist Youngone’s project and we see its success as ours,” he said.