Vietnam has issued a nationwide warrant for the arrest of a former business executive accused of causing massive losses at a state-owned textile company.

The move came amid news reports that 42-year-old Vu Dinh Duy fled the country last October, right before inspectors found violations at his company.

Between 2009 and 2014, Duy was a former general director for PVTex, a joint venture between state oil and gas group PetroVietnam and textile giant Vinatex, which built a polyester plant in the northern port city of Hải Phòng.

Under his leadership, the plant failed to turn a profit and incurred losses of more than $US61.6 million.

The plant was effectively shut down in September 2015 due to various investment and construction violations.