The project will be developed on an area of around eight hectares in Ben Luc District. Work on the factory will start next month and it will be up and running early next year.

Yu Yuang Textile said it expects the factory to produce around 16,800 tons of cloth each year for both domestic use and export.

The project is the company’s first investment in Vietnam, which is said to ready itself for opportunities in the market once the country signs the Trans-Pacific Partnership (TPP) agreement, which will offer the investor 0% tariff when exporting products to TPP member markets.

The Taiwanese company now provides cloth for renowned brands in the world such as Nike, Adidas and Triumph.

Last month, Hong Kong’s Huafu Vietnam Industrial Co., Ltd also received an investment certificate to develop a dyeing and yarn project covering an area of 20 hectares in Thuan Dao Industrial Park in the province’s Can Duoc District.

Costing some US$136 million, the project is planned to start operation next May and will be able to dye 20,000 tons of cotton and produce 30,000 tons of yarn.

As Vietnam is about to sign the TPP, many investors from China, Hong Kong, South Korea and Taiwan have since mid-2012 developed large-scale textile and dyeing projects in the country to cash in on opportunities to be brought by the TPP agreement.