KHUJAND, February 3, 2010, Asia-Plus — The Khujand-based Tajik-Vietnamese joint venture for producing floss thread, VT-Silk, has been stood idle since last week because of lack of orders for its product, Asia-Plus has learned at the VT-Silk administration.
The enterprise suspended its operation upon recommendation of the foreign shareholder, the source said. According to him, 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.
“It is still unknown when the enterprise resumes operations,” said the source, “It will be known only after February 15. If the enterprise resumes operations, 400 people will work with it. We now have some 130 tons of cocoons, which is enough for six-month operation. In the meantime, the enterprises 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.
