Huntsman Textile Effects is stepping up its Vietnamese footprint. The dyes and chemicals provider announced Thursday that it’s opening a new bonded warehouse near Ho Chi Minh City in the south of the country later this month.
Huntsman President Paul Hulme declared in a statement that the company is “fully committed” to the growth of the country’s textile and garment industry.
“Vietnam’s textile industry continues to face economic and environmental pressures. To help consumers stay ahead of the game, Huntsman Textile Effects recognizes that speed and flexibility are top priorities across the textile value chain,” Hulme said.
As such, customers will benefit from shorter lead times and a quicker response to ad hoc deliveries through the new facility. Located in the inland container depot at Long Binh, the multi-user warehouse is expected to operate at a full capacity of 250,000 tons and is scalable to support customers’ growth objectives when free-trade agreements such as the U.S.-led Trans-Pacific Partnership (TPP) are formalized.
The news follows an announcement in February that Huntsman would implement a water- and energy-saving Productivity Improvement Program (PIP) at a knitwear mill operated by Panko Vino Corporation in Vietnam, reinforcing the facility’s growth as a sustainable export business.
Vietnam is currently the second largest garment exporter to the U.S. and Japan (the General Customs Department reported $926.6 million in exports to the U.S. alone in January) and the industry accounts for 14 percent of the country’s total exports. In addition, production is poised to grow by about 13 percent annually until 2020.