by Apparel Resources News-Desk
06-December-2018 | 2 mins read
Several Japanese enterprises plan to increase their investment into Vietnam’s fast-growing apparel and textile sector.
When Itochu – a prominent trading house in Japan – had invested US $ 47 million to buy an additional 10 per cent of the Vietnam National Textile and Garment Group (Vinatex) earlier this year, only 2 out of the 11 member countries had given their consent to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Once the deal was signed in March 2018, Itochu became Vinatex’s second largest shareholder. Currently, 7 countries have approved the deal with Vietnam being the latest.
The group apparel export value from Vietnam presently stands at US $ 558 million. The company intends to enhance processing volume and increase its export value to US $ 878 million by 2021.
Sakai Amiori, another Japanese establishment, recently opened a garment export production unit in Phu Ha Industrial Zone (IZ) which has been consistently giving good output.
Similarly, in less than 4 years, Matsuoka Corporation has expanded its production capacity by 6 to 7 fold through the Matsuoka Phu Tho plant.
As a partner to renowned apparel brands like Uniqlo and Tore, Matsuoka Corporation today generates a yearly revenue of US $ 530 million.
The company has also invested US $ 16 million in an apparel plant, which by the end of 2018 is expected to create jobs for over 2,500 workers.
Increase in investment from Japan, complemented by opportunities created from FTA and CPTPP, may turn Vietnam into a global manufacturing base.