China Invests $300 Million in Vietnam Yarn Factory

By Jim.Robinson|July 18, 2012

As the cost of employing domestic workers continues to rise in China, the world’s top cotton producer and exporter continues to invest in nearby Southeast Asian countries. The most recent example is the TexHong Textile Group, which began construction of a yarn factory in the northern Vietnamese province of Quang Ninh earlier this month.

The $300 million, 40-hectare factory includes six workshops and, once it goes into operation in the third quarter of next year, is expected to produce nearly 140,000 tonnes of yarn per year. Four of those workshops are included in the first and the second phrases of the project, generating about 92,000 tonnes of cotton and synthetic fabrics, cloth and by-products annually. The two remaining workshops, which will have a capacity of about 46,000 tonnes per year, are not expected to be completed until 2017.

Vietnam continues to show growth in garment and textile exports, shipping $6.5 billion worth of materials in the first half of 2012, an increase of 11% over the same period last year. However, exports are expected to lag as long as the United States and the European Union, top markets for Vietnamese garments, continue to suffer from struggling economies.