Vietnam is mulling re-starting production at the Dinh Vu Polyester Fiber Plant to meet growing domestic demand for the fibre.

The company is a subsidiary of the Petrovietnam Petrochemical and Textile Fiber Joint Stock Company (PVTex), itself a joint venture of the Vietnam National Oil and Gas Group (Petrovietnam) and the state-owned Vietnam National Textile and Garment Group (Vinatex).

The facility produced its first batch of polyester staple fibre (PSF) in 2011, but operations were suspended  in 2015 after incurring losses said to be in the region of VND1.47 trillion (US$65m).

Vinatex, which says demand for polyester fibre has been growing 10-15% annually in Vietnam, was the main customer of the plant, and helped with quality control by testing the fibre at the weaving and dyeing stages.

Foreign direct investment that flowed into the country's textile industry ahead of the EU-Vietnam free trade agreement and the now-abandoned Trans-Pacific Partnership (TPP) saw the number of spindles in the country double year-on-year to around 7m in 2016.

However, Vietnam currently imports some 700,000 tonnes of cotton per year and about 400,000 tonnes of polyester fibre, according to the Vietnam News Service.

For apparel manufactured in Vietnam to be exported to the EU under the new FTA, not only must the garment be made in Vietnam, but the fabric, thread, and any related dyes used in the garment must also originate in Vietnam.