And the investment from Japanese clothing manufacturers continues! Matsuoka Corp. will be soon building a new plant in Central Vietnam.
The firm’s decision is being considered as a part of a medium-term business strategy with the objective of minimising the dependence on China.
This will be Matsuoka’s 4th plant in Vietnam. The other 3 are in the southern province of Binh Duong and the northern provinces of Phu Tho and Bac Giang.
Come August and Matsuoka will in all probability set up a wholly-owned subsidiary, Annam Matsuoka Garment Co., to build and operate the new plant in the north-central province of Nghe An.
While speaking to media, Michihiro Fukagawa, Matsuoka spokesman, said that the firm hopes to start its operations in Nghe An at an early date.
The company sees Vietnam as an integral production centre for casual apparels bound for Japan and China. Notably, according to Vietnam’s Ministry of Industry and Trade, the country’s export revenue during January-June period totalled nearly US $ 18 billion, which is up by 8.61 per cent from the same time last year [Read our story: Want to increase exports to Japan? Focus on quality & design, say experts].
Michihiro further added that Matsuoka’s medium-term business plan intends at minimising its dependence on China by nearly 50 per cent by March 2021 by shifting its focus to Vietnam from China, where production costs are on the rise.