Shenzhou Completed Textile Production Chain in Vietnam

Worldon Vietnam Co., Ltd (under Shenzhou Corporation, China) have set up business in Vietnam with 2 large garment projects. It is likely that they will continue to expand its investment.

Worldon Vietnam has put the 310 million USD project in Dong Nam Industrial Zone, Cu Chi District, Ho Chi Minh City into production. Earlier, in early 2015, the company was licensed by Ho Chi Minh City for investment project with an additional investment capital of 140 million USD.

At the time of raising capital, Mr Ma Jianrong, President of Worldon Vietnam said that Shenzhou is a manufacturer of complete knitwear products, from the initial stages to the final garment products for famous fashion brands in the world such as Nike, Adidas, Puma, Uniqlo… The project is expected to complete all stages to go into production right in 2015. However, the extension of the project was suspended and early in 2016 was restarted.

Regarding this project, according to the Management Board of Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA), this is the largest textile and garment project in industrial zones of Ho Chi Minh City. Although the city has a policy of not attracting labor-intensive projects, including textile and apparel projects, this project has been licensed since investors committed to using the most advanced equipment and technology in the textile industry.

This is also the final stage of the production chain of the Shenzhou Corporation. Accordingly, the Gain Lucky Vietnam Garment Factory in Phuoc Dong Industrial Zone (Tay Ninh) will supply raw materials for factories of Worldon Vietnam. In addition, the projects of Worldon Vietnam have invested and built fashion design centers and production of garments, hats, shoes…

Thus, with the 2 above projects, this Chinese investor has poured over 700 million USD in Vietnam. With the completion of the textile and garment chain from the fiber stage to the final stage, it is likely that the company will continue to expand its investment.

As of November 20th 2017, Vietnam has 24,580 effective foreign direct investment (FDI) projects, with a total registered capital of 316.91 billion USD. The export value of the FDI sector accounts for about 70% of the total export turnover of the country. In the past 11 months, textile and garment export turnover reached 23.6 billion USD, increase by 9.5% over the same period of 2016.