Nam Dinh province licenses Crystal-invested $60 mln textile-garment project

The industrial parks management board of Nam Dinh province in northern Vietnam has granted an investment registration certificate for a $60 million foreign-invested textile and garment project.

According to the certificate, the Yi Da Denim Mill (VN) Co., Ltd project will be invested by Crystal Denim Textiles (BVI) Limited on a total land area of 24.16 hectares in the Rang Dong Textile Industrial Park (Aurora IP).

The three-phase project has total investment capital of $60 million, of which $12 million or 20% will come from the Hong Kong (China) investor.

Work on the first phase, with an investment of $36 million, will kick off in 2024 and be completed in the first quarter (Q1) of 2026, with official production starting in the third quarter of 2026.

The investor plans to work on the second phase ($12 million) from Q4/2026 to Q2/2028, and official production is scheduled for Q4/2028.

In the final phase ($12 million), the investor will complete legal procedures and start construction from Q3/2028 to Q2/2030. It expects to complete construction and conduct trial runs in Q3/2030 before official production in Q4 that year.

After completing all three phases, the project's annual capacity is expected to reach 55 million square meters of dyed fabric, five million square meters of undyed fabric, and 20 million clothing products.

According to the investment registration certificate, the investor is entitled to incentives under the Law on Corporate Income Tax and Law on Export and Import Duties. It is also exempted from land rent, land use fees, and land use tax in accordance with the Land Law.

Listed on the Stock Exchange of Hong Kong Limited, Crystal is one of the leading corporations in the region and the world in closed textile and garment chains. Its revenue has hit about $2.5 billion with its main customers being Uniqlo, Victoria's Secret and American retail brands.

Vietnam has been a main production area for Crystal over the past 20 years, with five factories in Hai Duong, Hai Phong, Bac Giang, Phu Tho and Binh Duong provinces. The company’s total export revenue in Vietnam has reached about $1 billion. It now employs 40,000 workers in the Southeast Asian nation.

Crystal has pledged to bring its total investment capital in Vietnam to nearly $200 million.