According to Vietnam’s “Economic Times” report on August 11, the Trans-Pacific Partnership Agreement (TPP) is about to be signed. In order to enjoy the benefits brought by the TPP, companies from mainland China, Hong Kong SAR, and Taiwan have invested in this year. in the textile field of Vietnam. Vietnamese public opinion circles have questioned whether Chinese-funded textile companies can comply with environmental protection agreements and use advanced technologies. However, the Vietnam Cotton Fiber Association said that Vietnam should view investment from a development perspective and that Chinese-funded textile companies do not need to worry about investing in Vietnam.
According to reports, the main reason why Chinese-funded companies invest in Vietnam’s textile field is that its domestic labor costs, water, electricity, sewage treatment and other expenses are relatively high, resulting in rising production costs and declining competitiveness. In addition, the Chinese government is increasing pollution penalties and blacklisting companies that do not meet environmental pollution standards. Currently, this type of blacklist is also open to Vietnamese companies.
According to reports, textile companies from mainland China, Hong Kong SAR, and Taiwan have relatively large investments, with an average contract value of US$50 million per project. For example, Texhong Textile Group Co., Ltd. invested US$200 million in Nhon Chak Industrial Zone in Vietnam in 2006 and produced 400,000 spindles of yarn annually. In 2012, the company invested US$300 million in Quang Ninh Province and produced 37 yarns. Thousands of tablets. The company’s annual yarn production far exceeds the total output of local enterprises in South Africa. Currently, Vietnam Textile Group’s annual yarn output is only 50,000 spindles. In addition, the production technology of Tianhong Textile Group is relatively high, which is difficult for local Vietnamese companies to match. Large-scale textile projects newly added this year such as Hong Kong (Vietnam) Lu Thai Company (US$161 million) and Taiwan’s Polytex Far Eastern Group (US$270 million) are all powerful textile companies in China and use advanced technology. Therefore, Vietnam should view the foreign investment brought to Vietnam by the TPP with a calm mind. Vietnam can take relevant measures and promulgate policies and regulations to effectively supervise foreign investment projects.