Aurora IP Aims To Remove Bottlenecks And Facilitate FDI Flow Into Vietnam's Textile Industry

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HANOI, Vietnam, Nov. 21, 2022 (GLOBE NEWSWIRE) -- Despite global economic uncertainty, Vietnam is still attractive to foreign investment capital flow. According to the General Statistics Office (GSO), realized FDI investment in Vietnam in the first nine months of 2022 was assessed at US$15.43 billion, a 16.3% increase over the same period last year. This is the highest level of realized FDI in 9 months for the past five years.

This figure proves a strong increase in foreign direct investment and record-breaking growth in its private sector as well as reforms that welcome international investors, have spearheaded Vietnam into one of the top-performing economies in the region.

Vietnamese Government has recently approved its 10-year National Strategy on Foreign Investment. It aims to raise the proportion of registered foreign investment flows from certain countries and territories to over 70% in the 2021 - 2025 period and 75 percent in 2026 – 2030, to attract higher quality investments, including green manufacturing, high-tech, and digital sector.

Although green growth is a focus of Vietnam's economy, foreign investors seeking investment opportunities in the green textile industry continue to face a lot of bottlenecks in terms of technical systems, transparent information, cleared land resource, complicated administrative procedures, and shortage of human resources post-pandemic.

While textile and garment industry is the backbone of Vietnam's economy, the policies for industrial zone development are still not fully effective over years.

“As concerned about environmental pollution, many provinces have rejected textile and dyeing projects, causing the shortage of sufficient domestic supply of materials. This is the main reason why 65-70% of raw materials are imported,” Vu Duc Giang, Chairman of Vietnam Textile and Apparel Association was quoted as saying in Industry and Trade Magazine. 

Experts believe that recently signed new-generation free trade agreements, such as the EU-Vietnam Free Trade Agreement (EVFTA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), will attract foreign investment to the garment-textile sector in the years to come.

Nam Dinh province, the cradle of Vietnam's textile industry, is pioneering in offering incentives for investors in terms of corporate income tax, import and export tax, support for training textile workers, etc. With the favorable environment, as of 2021, Nam Dinh province was home to 123 FDI projects, with a total registered capital of US$3.7 billion, according to Vietnam's GSO.

Contributing to unlocking foreign investment capital flow into the province, Aurora IP, developed by one of Vietnam's leading real estate developers Cat Tuong Group, has offered an environment that facilitates the manufacturer's stable and long-term production activities and features sufficiently good supporting industries.

Oriented to be a green - clean - sustainable industrial park and a well-balanced industrial ecological community, Aurora is one of the very few IPs in Vietnam qualified to accommodate fabric-dyeing facilities.

Besides the two large-scale projects with total investment capital of $210 million that were signed contracts and handed over of premises, including TOPT Textile Ltd and Jehong Textile Vietnam, Aurora IP has recently signed another contract with a Hong Kong-based top textile company, increasing the total foreign investment capital to $300 million. Once put into operation, these projects' production capacity is expected to reach nearly 90 million meters of fabric per year and create 4,000 jobs.

Aurora's wastewater treatment system is well designed with a large capacity of 110,000 m3/day night, divided into modules with advanced and synchronous technology, shall ensure the receipt and treatment standard of wastewater before discharging.

In addition to the advantages of a convenient location and a good infrastructure system, tenants at Aurora IP are entitled to appealing incentive policies on corporate income tax, import tax, value added tax, especially specific incentive policies for producers of supporting industrial products.

“With the mission of laying the foundation for sustainable development of investors in Nam Dinh province, Aurora IP is also committed to providing free support for procedures to obtain investment registration certificates and business registration certificates for tenants and work closely with them during the development of their projects at Aurora IP through a single-window service system,” said Mr. Tran Quoc Viet - Chairman & CEO of Cat Tuong Group.

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