Vinatex to invest heavily in fiber sector

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SaigonTimes English - 29 month(s) ago 18 readings

HCMC - Vietnam National Garment and Textile Group (Vinatex) will spend half of its VND24 trillion budget on the fiber sector during the 2011-2015 period.

By Tran Thu - The Saigon Times Daily

HCMC - Vietnam National Garment and Textile Group (Vinatex) will spend half of its VND24 trillion budget on the fiber sector during the 2011-2015 period.

Vinatex plans to invest in expanding production lines, building fiber and dye factories between now and 2015. Particularly, VND10.42 trillion will be allocated to 20 fiber processing mill projects.

Thanks to the investment strategy, Vinatex’s fiber output will increase at a steady pace, from 112,000 tons in 2011 to 125,500 tons this year and it will hit 231,000 tons by 2015. At present, it generates 21% of the country’s total fiber output of 514,000 tons.

The state-run textile group plans to develop fiber factories in the provinces of Nam Dinh, Thanh Hoa, Nghe An, Hue and Quang Nam.

Apart from fiber production, Vinatex will set aside nearly VND7 trillion to stimulate the dye industry. It will construct 10 more dye factories in a bid to raise its cloth output to 506 million square meters by 2016 from last year’s 231.9 million square meters.

The country’s apparel industry currently is able to dye and finish around 800 million square meters of cloth annually. It must import 5.2 billion square meters of cloth each year to meet apparel production demand.

Total investment capital for the five-year production plan includes VND7.5 trillion from its own budget with the rest mobilized from commercial loans and investment credits, said Vinatex.

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