Japan-invested Koyu Textile Vietnam Limited Company inaugurated Wednesday a VND227.4 billion ($9.57 million) factory in the central province of Nghe An.
The project was given its investment certificate in June 2022. The 2.5-hectare plant, located at the WHA Industrial Zone 1 with an annual capacity of 22.4 million socks and stockings, uses modern technology and will employ 250 people, the investor said.
Le Tien Tri, head of the Dong Nam Economic Zone, said at the ceremony that the central province constantly strives to improve its investment environment, facilitate project implementation and attract investments.
Koyu Textile Vietnam CEO Kamada Masatsugu expressed his appreciation for local authorities’ support with administrative procedures.
Apparel and textiles form a key export segment for Vietnam, earning revenues of $18.93 billion in the first seven months of this year, down 15% year-on-year, according to the General Statistics Office. The sector ranked fourth behind electronics, computers and components with $30.79 billion, down 3%; mobile phones and components with $27.8 billion, down 18.3%; and machinery and equipment with $22.9 billion, down 10.4%.
The sector has been advised to shift rapidly to green production because the world is increasingly demanding social and environmental sustainability for the products consumed. Deputy general secretary of the Vietnam Textile and Apparel Association (VITAS), Nguyen Tuyet Mai, said at the Vietnam Sustainable Textile Day 2023 commemorated in March that greening textile and garment production chains was a global trend that has become indispensable for businesses targeting sustainability.
Nghe An has attracted $890 million in foreign direct investment (FDI) so far this year, according to the provincial authorities. The VND22 trillion ($939 million) WHA Industrial Zone 1 in Nghe An province is the first Vietnam project for WHA Industrial Development, a leading industrial realty developer in Thailand. The 1,850-hectare facility has completed its first phase covering 498 hectares.