There has been FDI expansion in the textile and garment sector of Vietnam. The country has become appealing to large foreign investor groups in the textile and garment industry. German-based Amann Group is constructing a factory. At the new production site, the group will produce around 2,300 tons of sewing threads per year, mainly for the manufacture of apparel and shoes. Amann is one of the world’s top three leading producers of high-quality sewing and embroidery threads. The new facility will be added to Amann’s existing network of factories in various countries across Asia, including Bangladesh, China, India, and Indonesia.

Kraig Biocraft Laboratories plans to set up a center for research and development of silk as well as grow mulberry to support spider silk in the country. Kraig is an American developer of spider silk-based yarn. Kraig has chosen Vietnam to scale up its spider silk commercialisation efforts.

A total of nearly $15.9 billion in FDI was injected into more than 2,090 textile and garment projects in Vietnam by the end of last year. In the first half of 2018, the industry attracted another $2.8 billion in FDI. The domino effect created by FDI expansion in the textile and garment sector has also led to an increase in the number of foreign suppliers of machinery and equipment for the growing industry.