KHUJAND, March 10, 2010, Asia-Plus — The Khujand-based Tajik-Vietnamese joint venture, VT-Silk, which has been standing idle since late January, is expected to resume operations in early April.
The enterprise produces floss thread and the source at the enterprise administration says they have begun preparatory work for accepting raw silk from domestic producers and launching drying plants.
According to him, the enterprise suspended its operation upon recommendation of the foreign shareholder because of lack of orders for its product. The whole VT-Silk’s output is exported to Southeast Asia’s countries and demand for its product has fallen in connection with ongoing global financial crisis.
If the enterprise resumes operations, 400 people will work with it, the source added. The enterprise now has some 130 tons of cocoons, which is enough for six-month operation. In the meantime, the enterprise has amassed 100,000 somoni worth of unsold product in its warehouses.
Tajik joint-stock company (OJSC) Abreshim owns 40 percent of the shares and Vietnam’s Asia Silk Corporation assumes the 60% ownership interest in the joint venture VT-Silk.
Founded in 1994 as Hiep Sang Export Co., Ltd, Asia Silk Corporation (ASC) was reorganized into a corporation Ltd. on January 1, 2001. Today, Asia Silk Corporation is one of the leaders in silk and cocoons production in Vietnam. Its products have been exported to many countries and now its main markets are Japan, India, Singapore, Thailand, Malaysia, Indonesia, Lao and Bangladesh.
