PM decision to accelerate textile projects

A source from the province reported that the prime minister has just approved a plan to hand over the management of Hai Duong’s Lai Vu Industrial Park (IP) to the local People’s Committee to accelerate site clearance for the two textile and garment projects with a combined registered capital of $557 million.

“This is the best solution, we tried our best to speed up the site clearance after attracting these investors but we proved incapable,” said Dang Cao Son, chairman of Lai Vu Company.

Lai Vu IP was one of seven projects invested in by state-owned shipbuilding group Vinashin, which was found guilty of wrongdoing in 2011. After the verdict the property was transferred to the Vietnam Oil and Gas Group.

Lai Vu has attracted 11 projects so far, including the two aforementioned, and while the other 9 are up and running, company leaders have shown little interest in their operations.

The two garment projects were relicensed in April after moving to Lai Vu. They faced similar difficulties in their previous location outside the park.

 Pacific Vietnam Textile’s $425 million factory will produce cloth and raw materials for the domestic and international textile and garment industry with a planned output of 360 million metres of cloth a year. Crystal Group’s $120 million facility aims to specialize in producing and trading textiles and garments for export. The remaining $12 million is a shared wastewater system for the two plants.

People’s  Committee Deputy Chairman Nguyen Duong Thai said the companies were a great opportunity to further develop the province and the IP, particularly as localities struggle to attract investment amid Vietnam’s economic troubles.

“The faster these projects get moving the better, for the province and its people,” said Thai, adding that “Authorities will work with them to solve the problem.”

The projects are expected to employ 20,000 and make a significant contribution to narrowing Vietnam’s trade deficit by creating a substantial local supply of cloth for domestic production and export.

Pacific Textile and Crystal have clients from around the world including Japan’s Uniqlo, Walmart, JCPenney, Gap, and Mango.