Nam Dinh Textile Company, one of Vietnam's oldest textile plants, has contracted the Dutch Brugman Machinefabriek Company to purchase new mercerising equipment in order to upgrade its technology.

The upgrade is being funded through a 955,000 guilder ($395,000) grant from the Dutch Government under the Dutch Programme for Development Related Export Transactions (ORET). This will help Nam Dinh produce high-quality cloth for domestic consumption and export, the company said.

The ORET programme is a Dutch government initiative. It has paid out 29m guilders ($12m) for similar purchases from Dutch companies over the past 11 months.