Textile factories miss the right fit

July 31, 2012 | 09:07

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Two big foreign textile and garment projects in northern Hai Duong province are bogged down, two years after being licenced.

Hong Kong’s Pacific Vietnam Textile and Crystal Corporation’s projects with combined registered investment capital of $538 million would have been the largest vertically integrated projects of their kind in Vietnam and should have opened this year.

Pacific Vietnam Textile’s $423 million project aims to produce cloth and raw materials for textile and garment and churn out 360 million metres of cloth per year for both domestic and overseas markets while Crystal Group’s $115 million expanded garment project would specialise in producing and trading textile and garment products for exports.

However, site clearance at both projects has been painfully slow and Hai Duong authorities reported to have retrieved 28 hectares out of the planned 72ha. Mai Duc Chon, director of Hai Duong Provincial Industrial Parks Management Authority, said nearly 300 households were affected by site clearance and their claims included reasonable compensation costs, emloyment and environmental issues. According to the investors’ plans, their projects would attract 15,000 local workers.

Crystal Corporation’s Regent Garment Company general director Richard Chin said modern technology for wastewater treatment systems would be used. Crystal Corporation built the Regent Garment facility in northern Hai Duong province in 2006, with a capacity of 32 million garment units a year.

Crystal Corporation and Pacific Textile Holding have many world clients including Uniqlo in Japan, Wal Mart, JCPenney and Gap in the US, and Mango and H&M in Europe.