That foreign investors are pouring their capital into Vietnam will definitely help develop the local textile and garment industry. However, there are fears about projects in this category, especially those involving the dyeing phase. Impact on the environment is one concern.

So far, the bulk of foreign direct investments in the textile and garment industry are in the fields of fiber manufacturing, garment and accessories. The dyeing sector accounts for only around nine per cent of the total investment. Since the dyeing process may cause environmental pollution, one way is to license only projects that have decent water-treatment systems. High standards should be applicable to wastewater like water-treatment systems. Priority should be given to dyeing projects that bring in modern technology in wastewater treatment.

Aside from environmental pollution, some localities are also afraid of textile and garment projects because they are labor-intensive ones which require large armies of migrant workers. A larger populace of migrant work force would also mean there must be more schools, health care facilities, accommodation and a larger force in charge of security issues. Propelled by bilateral and multilateral FTAs signed recently, Vietnam is now emerging as one of the top spots in the world for investors in the garment and textile industry.