Taiwan's textile industry seeks to integrate upstream in Vietnam

Related surveys indicate that Vietnam's low labor costs and abundant raw materials are suitable for the labor-intensive garment industry.

As Vietnam’s chemical industry has not been developed, Vietnam has to import fiber raw materials from abroad. Therefore, there is no doubt that if foreign investors establish factories in Vietnam, upgrade their technological capabilities, and integrate upstream and downstream departments, the supply of raw materials will be guaranteed.

The production of man-made fibers in mainland China has increased significantly in recent years. Coupled with the signing of a tariff-free agreement between the Mainland and ASEAN countries, Taiwan’s textile industry is facing unprecedented pressure and has therefore begun to switch to the production of high-functionality type fabrics as a segmented area.

Taiwan’s textile industry has already begun to turn to integration in the upper reaches of Vietnam. For example, the Formosa Plastics Group invested US$750 million in 2005 to establish the first petrochemical functional area in Vietnam. Tainan Textile Co., Ltd. and Eclat Textile Co., Ltd. have cooperated in the integration of upstream and downstream departments.

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