Textile Industrial Complex Dedicated to Korean Enterprises to be Built in Vietnam

The Vietnamese government is planning to build an industrial complex dedicated to Korean textile companies ranging from fashion clothes manufacturers and vendors to yarn and material producers.

The companies have welcomed the news because it can contribute to the development of the industry by facilitating inter-stream cooperation. They are also anticipating that the collaboration will increase momentum for breaking the domination of the domestic market by foreign SPA brands.

According to industry sources, the Vietnamese government recently proposed the construction of the industrial complex via the Vietnamese Ambassador to Korea, Pham Huu Chi. The four candidate locations include Phu Tho Province. The Korea Federation of Textile Industries is going to discuss the proposition during the Inter-stream Cooperation Meeting on September 16 and carry out an on-site survey in October or later.

In fact, the Vietnamese government’s proposition is an outcome of the meeting. The federation held the second Inter-stream Cooperation Meeting in 2014 in February this year and invited the ambassador to put forward suggestions as to slower increase in minimum salary, tax incentives for investment, and improved taxation regarding transfer prices.

The Vietnamese government looked through the requests and reached a conclusion that the construction of an industrial complex will be more advantageous than systemic improvement in attracting investment from Korean textile companies. Vietnam is the second-largest investment destination for them.