Viet Nam Cotton and Spinning Association (Vcosa) said many foreign enterprises from Taiwan, mainland China, Korea and Japan have flocked to HCM City to look into investing in the domestic spinning industry for the past few months.

The companies felt they could benefit from tax exemptions or reductions as Viet Nam begins implementation of the Trans-Pacific Strategic Economic Partnership Agreement (TPP), said the association.

The agreement, which was signed last November, allows members to enjoy a zero tax rate by 2015.