Lack of capital forces Vinatex projects to a standstill
11 Aug '06
1 min read
Vietnam textile and garment group (Vinatex) announced that country's textile and garment industry has insufficient capital for investment and development projects.
So far this year, Vinatex has not added any new projects and has focused on implementing the ongoing 35 projects worth VND3,290 billion ($245 million) that were started in the past year.
However, by early August 2006, the invested capital for these projects reached almost VND100 billion ($6.25 million).
Now, most project enterprises have been stuck largely due to lack of capital, including Dong Phuong textile, Dong A textile, 8/3 textile and Nam Dinh textile.
In order to surmount such bad situation, Vinatex has planned to diversify capital sources from banking loans, cooperation among local enterprises, joint venture with foreign investors and participating stock market.
Major priority of Vinatex is to develop knitting and dyeing plants, services for apparel sector, shifting textile and apparel production unit from cities to countryside, improving management quality to maximize equipments capacity and product quality.
marketing@alchempro.com
