Korea East Group builds textile factory in Dong Nai Province, Vietnam

The Vietnamese Communist Party Electronic News reported on June 5 and the Fashion Fiber website on June 20 that on June 3, in the Luan-Bingshan Industrial Zone, Long Thanh County, Dong Nai Province, South Korea’s DONG-IL Group started Started construction of its first textile factory in Vietnam. The investment in the first phase of the plant is US$52 million. The plant is being constructed by South Korea’s POSCO Vietnam (POSCOE&C) and is expected to be put into operation in mid-2015. The factory will provide hundreds of job opportunities, with an annual output of 9,000 tons of fiber, and its products will be sold to the Asian market. Currently, South Korea is Vietnam’s fourth largest textile and apparel export market, second only to the United States, the European Union, and Japan. Vietnam’s textile and apparel exports to South Korea increased from less than US$300 million in 2009 to US$1.2 billion in 2013. Currently, negotiations on the Vietnam-South Korea Free Trade Agreement are underway and are expected to be signed in October this year. The Vietnam Textile and Apparel Association (VITAS) stated that the signing of the Vietnam-Korea FTA will further promote South Korean investment in Vietnam.
Phua Thi My Thanh, vice chairman of the Dong Nai Provincial People’s Committee, said that the province has established 31 industrial zones with a total area of ​​10,000 hectares. Currently, there are 1,100 effective foreign direct investment projects in the province, with a total investment amount of approximately US$20.6 billion. South Korea has 276 investment projects in Dong Nai Province, with a total registered capital of approximately US$4 billion, ranking second among countries and regions investing in Dong Nai.