Vietnamese infrastructure lures Luen Thai yet again

10 Sep '15

2 min read

Headquartered in Hong Kong, the Luen Thai Group has recently announced that it plans to expand its operations in Vietnam by investing in a garment and textile industrial park. According to Vietnamese media reports, the company revealed the plan during the announcement of interim results for first half of 2015.

Vietnam provides necessary infrastructure, favourable trade preferences, and a progressive textile and garment industry, ideal for the group to toughen its position. The availability of skilled and diligent workers, along with feasible trade environment, has attracted the group once again to choose Vietnam as a destination to expand.

The prospect of an expected passage of the Trans-Pacific Partnership (TPP) agreement is likely to further increase Vietnam's strength in garment manufacturing and exports.

The group had acquired Ocean Sky Group, a Vietnamese apparel manufacturing company with an annual turnover of $254 million, in 2013. This was followed by an investment in Thien Nam Sunrise Textile Joint Stock Company in 2014.

Continuing its association with Vietnamese companies, in early 2015, Luen Thai Group signed a cooperation agreement with Duc Giang Corporation (Dugarco), a leading garment business.

The Luen Thai Group has manufacturing and outsourcing partner facilities in Indonesia, China, Cambodia, India, Vietnam, and the Philippines. The group employs about 40,000 people across the world and has an annual turnover of $1.2 billion. (HO)

Fibre2Fashion News Desk – India