Vietnamese Textile Enterprises Lack Funds And Ride Hard

Vietnam clothing and textile companies will block large investment projects due to lack of capital in 2012.

Le Tien Truong, vice chairman of Vinatex, said: "due to the lack of large investment projects, the past year Economic pressure So far, the clothing and textile industry has not yet found the source of investment capital in 2012, especially raw materials development projects.

He said Vietnam's clothing and textile enterprises are aiming at the main. target Continue to manufacture and import raw material Raise capital and serve domestic commodity manufacturing and export.

Not only small and medium-sized enterprises, but also some powerful large enterprises, such as Viet Thang and Phong Phu, are also cautious about new projects.

In 2011, in order to meet the demand of export market, Vicotex invested only 60 billion Dong Dong (equivalent to 2 million 800 thousand US dollars) to purchase equipment and machinery to expand the quantity of products and improve the quality of products.

Vicotex chairman Nguyen Duc Khiem said: "due to shortage of funds and high interest rates, companies are not interested in large-scale investment projects."

Donagamex chairman Bui The Kich said: "in 2011, the company established and ran Dong Viet Phu, a new company specializing in the production of non-woven products, clothing and textiles. The total investment of the new company is not large enough to serve the domestic market. "

Nguyen Van Thoi, chairman of Thai Nguyen investment and trade, said: "in the first stage, Thai Nguyen invested 200 billion Vietnamese Dong (US $961 million) to build Phu Binh clothing and textile factories, but the total capital of the company only gained 80% profits. Therefore, although the company started operation in June 2011, until now, the project has not yet completed construction.

In order to cope with project capital shortage, the company leases financing and restructured company debt by transferring short-term capital investment equipment.

Faced with a shortage of funds, clothing and textile enterprises hope that the government will provide funds to support them in realizing investment projects.