Japanese apparel manufacturer Matsuoka Corp has announced setting up of a new manufacturing plant in Vietnam.
To be opened in the north central province of Nghe An, the new unit will be the fourth unit in the country, with three units already established in northern provinces of Phu Tho and Bac Giang and in the southern province of Binh Duong.
The subsidiary plant, named Annam Matsuoka Garment Co, will be fully owned by the company and will start process in August this year.
“Like the three other plants, the new plant will make apparel on an original equipment manufacturer (OEM) basis. We are looking to start operations early, but the launch date and capacity are still to be worked out,” Matsuoka spokesman Michihiro Fukagawa stated.
In the FY’18-19 ending March 19, China accounted for about 60 per cent of Matsuoka’s out-of-Japan production revenue, followed by Bangladesh (25 per cent) and Vietnam (10 per cent). The opening of a new unit in Vietnam is the company’s strategy to lessen its reliance on China.
Its medium-term business plan calls for reducing China’s share to around 50 percent by March 2021 given the rising productions costs in Chinese manufacturing units. Alternatively, Vietnam is a key production base for casual apparel with lower production costs while Bangladesh subsidiary is making inner wear and working wear.
Image Source: http://www.flotron.org