Vietnam is reinforcing its position as a global fashion manufacturing hub with the approval of the TnB Vietnam fashion manufacturing plant in Binh Dinh province. The project, spearheaded by Singapore-based HGQ Asia Pte. Ltd., is set to become a cornerstone of the country’s thriving textile and garment sector, promising significant economic and employment benefits.
Major Investment in Phu Cat District
The new plant will be established in the Hoa Hoi Industrial Park, located in the Cat Hanh Commune of the Phu Cat district. Covering an expansive 8.4 hectares, the project has secured an investment of VND 495.8 billion (approximately $20 million). This funding includes $8 million in equity from HGQ Asia Pte. Ltd. and $12 million from mobilized financial resources.
The two-phased project underscores Vietnam’s growing allure for foreign direct investment (FDI), particularly in the textile and apparel sector. With its low operational costs, skilled workforce, and strategic location in global supply chains, Vietnam continues to attract international investors aiming to scale up high-end production capabilities.
Phased Construction Timeline
The TnB Vietnam project will be executed in two distinct phases. The first phase, running until October 2026, involves the construction of essential infrastructure, including workshops, warehouses, and office spaces. During this period, machinery will be installed, and workers will be recruited and trained to commence production operations.
The second phase, slated for November 2026 to November 2027, will focus on expanding the facility with additional workshops and equipment installations. With this expansion, the plant will gear up for full-scale production, aiming to achieve an annual output of 7 million high-end fashion items. This ambitious production target will cater to the growing global demand for premium apparel.
Long-Term Economic Commitment
The manufacturing plant is expected to operate until March 10, 2067, reflecting a long-term commitment to Vietnam’s economic development. The project is projected to create hundreds of jobs, enhance the local economy, and contribute significantly to Vietnam’s position in the global textile and fashion market.
Vietnam’s government has been proactively supporting such initiatives by fostering investor-friendly policies, including tax incentives, streamlined licensing procedures, and infrastructure investments in industrial zones. These efforts are paying off, as evidenced by this substantial investment from HGQ Asia Pte. Ltd.
Strategic Importance of the Project
This development comes at a critical juncture for Vietnam’s apparel industry. With global supply chains shifting due to economic and geopolitical factors, Vietnam has emerged as a preferred destination for companies seeking alternatives to traditional manufacturing powerhouses like China. The country’s robust trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), have further enhanced its competitiveness.
The TnB Vietnam plant will not only strengthen Vietnam’s high-end garment production capacity but also bolster its reputation as a reliable and quality-conscious manufacturing base for global fashion brands.
Projected Impact on Local and National Economy
The project’s large-scale operations are expected to provide a significant boost to the Binh Dinh province, creating direct and indirect employment opportunities. In addition to job creation, the development will likely spur growth in ancillary industries such as logistics, machinery maintenance, and local supply chains.
Vietnam’s textile and garment sector has consistently been one of its top export earners, contributing billions of dollars annually to the national economy. High-end production facilities like the TnB Vietnam plant are expected to increase the country’s value-added exports, improving profit margins and reducing dependence on low-cost mass production.
Looking Ahead
As the world shifts towards more sustainable and ethically produced fashion, Vietnam’s government and private investors are increasingly prioritizing eco-friendly practices. While the TnB Vietnam plant’s specific sustainability plans have not been detailed, it is expected to align with global trends, including the use of environmentally friendly materials and energy-efficient production methods.
This investment underscores the country’s long-term growth strategy for its textile and garment sector, which continues to evolve in response to international market demands. With its focus on high-end products, the TnB Vietnam plant will likely serve as a blueprint for future investments in the region, paving the way for Vietnam to climb further up the global value chain.
