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| Employees of Luen Thai, an apparel and fashion service provider, work at a production line in a factory in Dongguan, China's southern Guangdong province May 14, 2010. — Luenthai.com |
HA NOI (Biz Hub) — Hong Kong's Luen Thai Group, dealing in garments, has been considering a plan to invest in a garment and textile industrial park in Vietnam, the company announced on August 25.
The plan was reported in the group's announcement of interim results for first half of 2015 which said it recorded a revenue of approximately US$522 million.
It said the investment was an important strategic step for the company to strengthen its position in Viet Nam as the infrastructure, the rapid development of the textile/garment industry, coupled with trade preferences, should make Viet Nam a country of choice.
In view of the relatively favourable trade environment in Viet Nam, and the prospect associated with the expected passage of the "Trans-Pacific Strategic Economic Partnership Agreement" (TPP), Viet Nam would continue to be the country of choice in the foreseeable future for apparel manufacturing.
The group added that Viet Nam has already entered into free trade agreements (FTA) with China and Japan and markets are expected another FTA between European Union and Viet Nam.
These trade preferences, together with the abundant supply of skilled and hardworking labour, make Viet Nam a strategic choice for the group to invest in the next few years.
Thus, the group will continue to devote resources and efforts to the Vietnam projects, including the investment in Thien Nam Sunrise Textile Joint Stock Company and Duc Hanh Garment JSC (DHG).
In April 2014, TNS, which was principally engaged in fabric manufacturing in Viet Nam, became a jointly controlled entity of the group. In February 2015, the group invested VND54.229 billion ($2.54 million) in DHG, which was engaged in the production, import and export of garments in Viet Nam.
In 2013, the group bought Ocean Sky Group, also dealing in apparel, which had an annual turnover amounting to approximately US$254 million and production of about 60 million pieces of garments and over 8,400 employees in Tay Ninh District.— VNS