Vinatex is looking to build the first polyethylene (PE) fibre plant in Vietnam, to serve domestic textile and apparel producers.

Construction of the plant, which will be a joint venture between Vinatex and Vietnam gas and petrolium group PetroVietnam, is scheduled for the second quarter of 2008 at Dung Quat Economic Zone near the Dung Quat oil refinery complex.

The PE fibre plant will cost VND3,000bn (US$187.5m), and production of the fibres themselves will use petrochemical products from Dung Quat Oil refinery complex.

Vietnam's textile and garment industry has previously performed stages like spinning, knitting and dyeing, but PE fibre production is an entirely new field for the country.

By Ngo Tuan.