Workers are manufacturing garment products at a 100%-foreign invested VIT Corp factory. (Photo: vitcorp.vn)
The construction of the new garment factory is scheduled for commencement in 2016 in Vietnam’s southern province of Tien Giang. It will be completed and fully commissioned by 2017, with an initial production capacity of about 4.5 million pieces annually.
Of the proceeds, 22 million ringgit ($5.1 million) has been earmarked for the Vietnam factory and land acquisition cost will be paid with internal funds. The remainder will be for the fabric mill.
Prolexus said the plant was part of its strategy to cash in on the Trans-Pacific Partnership Agreement (TPP
), which has been finalized between Vietnam and 11 other countries, and a free trade agreement (FTA
) between Vietnam and the EU.
A wide array of manufacturers from mainland China, Hong Kong
, Taiwan and India have planned and already come to Vietnam to set up fabric, textile and garment facilities to make use of the FTAs, which will remove import tariffs for made-in-Vietnam products.