HONG KONG -- For Texhong Textile Group, investing in Vietnam was a strategic move to circumvent the adverse impact of its home country not being part of the Trans-Pacific Partnership. But now, even as uncertainty looms over the free trade pact amid open opposition by both major-party U.S. presidential candidates, the Chinese company is firmly committed to further expansion in its southern neighbor.
Texhong, one of the world's largest yarn suppliers, has been aggressively building up production capabilities in TPP signatory Vietnam. Founder and Chairman Hong Tianzhu has said one of the main intentions of investing there is to deal with the trade agreement. Execution of the TPP "will pose new challenges to China's textile and apparel enterprises," so the company is building up its Vietnam operation "with respect to the cost advantages" and prospects of the pact, he said in its latest annual report this March.
