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Japanese firms are scaling up investment into Vietnam’s textile and garment sector to take advantage of the huge market potential and Vietnam’s new-generation free trade agreements.
Besides agricultural produce, the cement sector posted phenomenal export growth in the first half of the year.
Despite resuming operations, Ninh Binh Nitronegous Fertiliser Plant faces difficulties in remaining open in the long run due to lack of capital and massive debts.
Cong Thanh Cement JSC decided to build a second cement station despite its crippling debt volume of roughly $600 million, domestic cement surplus, and unfavourable economic and market conditions.
State Capital Investment Corporation (SCIC) may find it difficult to entirely divest Vietnam National Textile and Garment Group (Vinatex), as the Vietnamese textile and garment industry has been losing popularity.
Increasing the regional minimum wages, coupled with the high prices of social insurance and ocean shipping fares, has raised concerns about the development of Vietnam's textile and garment industry.
Despite restructuring, Dinh Vu and Lao Cai DAP fertiliser plants, two of the twelve loss-making projects under the management of the Ministry of Industry and Trade (MoIT), are still struggling and facing possible closure.
Vietnam National Textile and Garment Group (Vinatex) has proposed the prime minister to allow the company to divest all state-owned capital as a measure to resolve difficulties in business.
With no sharp increase in sight, and despite a reduced number of projects in recent years, the Vietnamese textile industry still attracts more than $750 million in FDI in the first six months of this year, mostly from investment capital increases in existing projects.
Siam Cement Group (SCG), Thailand’s largest manufacturer of cement and construction materials, has made moves to secure and increase the market share of Song Gianh Cement in Central Vietnam.