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Vinatex and Japanese investor form alliance

Released at: 15:39, 11/04/2015

Vinatex and Japanese investor form alliance

The two parties have signed a joint venture contract for a major manufacturing operation in Quang Tri.

by Hoai An

At the beginning of April 2015, Vietnam National Textile and Garment Group (Vinatex) and Japanese partners TOMS signed an agreement to implement a complex project entitled "Textile-Dye-Garment" at Dien Sanh Industrial Zone in Quang Tri. The signing ceremony was held successfully at the headquarters of Vinatex in the presence of leaders of the group.

Accordingly, Vinatex and TOMS will cooperate to manufacture t-shirts. The project has a total investment of $12 million and consists of three plants. One will house textiles and dyeing with a capacity of 2,500 tons of knitted fabrics per year, another is the garment factory with a capacity of more than 10 million units per year and a wastewater treatment plant will process 1,200 cubic meters per day.

Deputy general director of Vinatex, Mr. Dang Vu Hung, said that all plants have invested in machinery, equipment, technological lines and infrastructure. It will be the most modern manufacturing complex in central Vietnam.

Construction is slated to begin shortly and finish by the end of the year. With the future implementation of the production of other goods, sales from products manufactured is expected to increase from $8 million in 2015 to $40 million in 2017.

"The resources of foreign investors such as capital, stable output and technology as well as the resources of local businesses will help the project to be constructed and operated effectively," said General Director of Vinatex, Mr. Le Tien Truong.

TOMS was founded in 1981 with headquarters in Tokyo, and produces spandex garments such as t-shirts, polo shirts, sweatshirts, blouses and uniforms. It has six branches throughout Japan from Hokkaido to Kyushyu. It has a shirt manufacturing plant in China that operates entirely from Japanese capital, and representative offices in Ho Chi Minh City and Dakka, Bangladesh. Annual sales have reached $200 million.

Japan is the third largest export market of Vietnam with turnover of $3 billion in 2015. This project will create more opportunities for textile exports to Japan.

Previously, Japanese trading firm Itochu and VTJ signed a framework agreement on business cooperation to implement new investment projects in dyeing and production in Vietnam. In the next five years, the project is expected to gain $60 million as well as create thousands of jobs.

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