The Dinh Vu Polyester Fibre Plant (PVTex) in the northern Vietnamese port city of Hai Phong has closed and faces bankruptcy after little more than one year of operating owing to losses.
The US$325m plant planned to use materials from the Dung Quat Oil Refinery Plant to make fibres. The state-run oil and gas giant PetroVietnam (PVN) owns 75% of the plant, which was built in a bid to help Vietnam’s textile sector rely less on imported raw materials.
PVTex was hoping to meet 40% of domestic demand for fibre, and 12% for yarn, according to PVN. However, a wildly inaccurate feasibility report and uncompetitive production costs have ruined all expectations of the oil and gas producer.
For the full story, see the November 2015 edition of Textiles South East Asia. Not a subscriber? Sign up HERE