Illustrative image (Photo: VNA) Hanoi (VNS/VNA) — The first eight months of2020 have seen few foreign direct investment (FDI) projects in Vietnam'stextile industry, a far less lively picture compared to the same period lastyear, the department of foreign investment under the Ministry of Planning andInvestment has reported.
Total FDI registered since the beginning of the year was19.54 billion USD, just 86.3 percent of the same period last year, thedepartment said.
Le Tien Truong, CEO of Vinatex, one of the largest textilecompanies in Vietnam, said FDI inflow was unlikely to pick up in the nearfuture.
"It's not realistic to expect large FDI projects to take place right now,especially textile projects, as major markets including the US and the EU arestruggling to recover. Investors are much less eager to start large projectswhile market demand stays low," said Truong.
Industry experts, however, were optimistic about the prospectof Vietnam as an investment destination once the pandemic is controlled.
Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, said thecountry was among a number of strong candidates to take over FDI investment intextile as traditionally large producers such as China, Japan, the Republic ofKorea and Taiwan have seen reduced output in recent years.
"We are likely to see FDI investment picking up oncevaccines are made available and demand starts to recover," Giang said,"In other words, investors must have reasons to feel assured about theirinvestments to pull the trigger."
As a member of numerous trade deals including the EU-VietnamFree Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreementfor Trans-Pacific Partnership (CPTPP), Vietnam remains an attractivedestination for investors who are looking to take advantages of free trade,according to experts.
In addition, the country's successful effort in fighting offthe novel coronavirus may encourage investment. Having more FDI projects alsomeans faster and stronger localisation of textile productions as the countrymust stay on course with product origin commitments.
Textiles are one of the country's strongest exportindustries, of which FDI projects play a large part, with total revenue of 39billion USD recorded last year./.
Total FDI registered since the beginning of the year was19.54 billion USD, just 86.3 percent of the same period last year, thedepartment said.
Le Tien Truong, CEO of Vinatex, one of the largest textilecompanies in Vietnam, said FDI inflow was unlikely to pick up in the nearfuture.
"It's not realistic to expect large FDI projects to take place right now,especially textile projects, as major markets including the US and the EU arestruggling to recover. Investors are much less eager to start large projectswhile market demand stays low," said Truong.
Industry experts, however, were optimistic about the prospectof Vietnam as an investment destination once the pandemic is controlled.
Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, said thecountry was among a number of strong candidates to take over FDI investment intextile as traditionally large producers such as China, Japan, the Republic ofKorea and Taiwan have seen reduced output in recent years.
"We are likely to see FDI investment picking up oncevaccines are made available and demand starts to recover," Giang said,"In other words, investors must have reasons to feel assured about theirinvestments to pull the trigger."
As a member of numerous trade deals including the EU-VietnamFree Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreementfor Trans-Pacific Partnership (CPTPP), Vietnam remains an attractivedestination for investors who are looking to take advantages of free trade,according to experts.
In addition, the country's successful effort in fighting offthe novel coronavirus may encourage investment. Having more FDI projects alsomeans faster and stronger localisation of textile productions as the countrymust stay on course with product origin commitments.
Textiles are one of the country's strongest exportindustries, of which FDI projects play a large part, with total revenue of 39billion USD recorded last year./.
VNA
