Hong Kong-based Texhong Textile Group is bolstering its presence in Vietnam.
According to local media reports, the yarn and fabric manufacturer has received a syndicated loan of $103 million which will be used to expand production of its Vietnamese subsidiary, Texhong Galaxy Technology.
Eight banks signed the loan at a ceremony Wednesday, including Bank of China’s Ho Chi Minh City branch, whose director said that two-way trade between both countries will surpass $100 billion this year and that Vietnam will unseat Malaysia as China’s biggest trading partner in Southeast Asia.
Huang Yiyong, general director of Texhong Galaxy Technology, said the investment would create more jobs for Vietnamese people, contribute more to the country’s budget and help facilitate technology transfer.
Texhong currently has four production bases in Vietnam that churn out about 300,000 tons of textiles each year, or 43 percent of the country’s total output. Earlier this year the company said it planned to expedite the development of an international industrial chain platform in Vietnam in order to capture potential business opportunities created by the 12-nation Trans-Pacific Partnership (TPP). This strategy will include starting construction on phase two of a gray fabric factory, a dyeing factory and a garment factory as part of the Galaxy project in 2016.
By the end of the third quarter of the current fiscal year, the company said it expects to have 1.24 million spindles in Vietnam.