Vietnam’s Da Nang Investment Promotion Center stated that foreign direct investment fell by 45% year-on-year in the first three months of this year, and directly rejected 2 foreign investment projects with investment amounts exceeding 100 million yuan because the projects may be harmful to the environment. The projects are mainly in the fields of textile, printing and dyeing, and clothing. One of them is a Hong Kong investor with a capital of US$200 million, and the other is a Korean investor.
Danang City is one of the most beautiful beach cities. It mainly develops the tourism industry and is actively developing sustainably. The city has decided to attract only high-tech and clean environmentally friendly projects.
Ba Ria and Dong Nai provinces also announced that they would not support the entry of labor-intensive and polluting industries.
After various provinces rejected printing and dyeing projects, some analysts expressed concerns about this, believing that the implementation of Vietnam’s plan to use TPP to develop the textile and clothing industry may be hindered.
Ho Chi Minh City, Binh Duong and Dong Nai were the first to announce that they would not support the entry of dyeing and textile investment projects, believing that they would cause pollution to the local environment. But local media reported the government was reconsidering their decision.
The Dong Nai Provincial Government has listed the textile printing and dyeing industry as a conditional industry. Only after investors believe that the project can meet the pollution treatment requirements can the permit be obtained.
Binh Duong Province is also reconsidering investment projects in the printing and dyeing industry because it has developed a large industrial park and needs investment.
Ho Chi Minh City has also established an industrial park, which requires textile and clothing projects to move in. However, the industrial park only accepts large-scale projects and uses modern technology. The local government expects the global textile and clothing market to develop rapidly. At the same time, the TPP trade agreement will bring opportunities to Vietnam’s textile and clothing industry.