Foreign textile firms have been flocking to Vietnam ahead of TPP. (Photo: VNA).
Taiwanese conglomerate Far Eastern Group (FEG) is seeking to erect a textile and synthetic fiber complex worth $760 million in the southern province of Binh Duong
, in a move to take advantage of the yarn-forward rule under the mammoth Trans-Pacific Partnership (TPP) agreement.
This is the company’s second project in the province, home to multiple foreign-invested enterprises, according to the Vietnam News Agency.
Far Eastern Ploytex Vietnam, a subsidiary of FEG, has invested in a $274-million textile project to supply in Bau Bang Industrial Park.
Far Eastern’s projects will create jobs for 7,500 laborers and give a boost to textile supporting industries, said Tran Thanh Liem, chairman of the provincial People’s Committee, adding that the local government may grant an investment license to the firm next year.
According to the Binh Duong Textile and Apparel Association, foreign investors have been licensed to put nearly $500 million in textile projects in the province since the TPP was signed in early February.
The province houses over 560 firms operating in this industry, of which some 100 are domestic ones.
Textile was FEG’s first business fields. Far Eastern Textile, the group’s core textile business, was established in 1949 and was renamed to Far Eastern New Century in 2009. It accounts for one fourth of the group’s total revenues.
The group’s 2011 polyester production capacity is over two million tons, making Far Eastern one of the world’s five largest polyester manufacturers, according to FEG’s website.