China’s attire large ‘unwinds’ Texhong Business Park growth in Vietnam

China-headquartered Texhong, among the largest core cotton textile suppliers in the world, will “unwind” the expansion of its Texhong Industrial Park (Texhong Hai Ha Industrial Park) in the northern Vietnam province of Quang Ninh, the firm said on Monday.

For Land Lot 1 of the industrial park, Texhong said it has been continuously engaging in various meetings and discussions with relevant authorities to update the industrial park’s framework. However, applications made to change the function of Land Lot 1 have all been rejected.

As a result, Texhong said it is of the view that it would be in the best interests of the firm and shareholders to “discontinue the attempts to complete the registration of Land Lot 1.”

Quang Ninh authorities subsequently advised that Land Lot I is designated for “common use,” Texhong clarified.

Regarding Land Lot 2, the area has been rezoned into two areas. Registration for the 7.6 hectare Land Lot 2A on which the firm’s assets are located has been completed. The other, 2.1-hectare Land Lot 2B, is vacant and the registration process is slow.

After careful consideration, Texhong said it is of the view that “there is no need to proceed with registration of Land Lot 2B at the present time.”

As Texhong has only proceeded with the acquisition of Land Lot 2A and the utility assets thereon, it is expected that the required utilities supplied from the facility alone will not be sufficient to fulfil the expected demand for operations of Texhong members in Hai Ha Industrial Park.

Therefore, the firm is of the view that it is for the commercial benefit to “source additional supply” of the required utilities from Texhong Industrial Park, instead of incurring capital expenditure or additional cost for “construction of its own facility or sourcing from third party suppliers.”

Texhong is investing in two industrial parks in Quang Ninh, namely Texhong Ngan Long and Texhong Hai Ha. The 660 hectare Texhong Hai Ha has completed the construction for 376 hectares and has so far attracted 27 investments with the total registered capital of $3 billion, with 14,000 workers.