09:48 | 04/09/2015 Economy
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 in late August.
Illustrative image (Source: Luenthai.com)
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 522 million USD.
It said the investment was an important strategic step for the company to strengthen its position in Vietnam as the infrastructure, the rapid development of the textile/garment industry, coupled with trade preferences, should make Vietnam a country of choice.
In view of the relatively favourable trade environment in Vietnam, and the prospect associated with the expected passage of the "Trans-Pacific Strategic Economic Partnership Agreement" (TPP), Vietnam would continue to be the country of choice in the foreseeable future for apparel manufacturing.
The group added that Vietnam has already entered into free trade agreements (FTA) with China and Japan and markets are expected another FTA between European Union and Vietnam.
These trade preferences, together with the abundant supply of skilled and hardworking labour, make Vietnam 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 Vietnam, became a jointly controlled entity of the group. In February 2015, the group invested 54.229 billion VND (2.54 million USD) in DHG, which was engaged in the production, import and export of garments in Vietnam.
In 2013, the group bought Ocean Sky Group, also dealing in apparel, which had an annual turnover amounting to approximately 254 million USD and production of about 60 million pieces of garments and over 8,400 employees in Tay Ninh./.