Itochu has increased its ownership of the state-owned Vietnam National Textile and Garment Group (Vinatex) with a view to expanding the country’s capabilities and turning it into a textile export hub for Europe amid rising labour costs in China (reports Nikkei Asian Review).
The Japanese trading house spent around ¥5bn (US$46.9m) to lift its stake in Vinatex to nearly 15%, becoming the second-largest shareholder after the Vietnamese government.
The company already had a 5% interest, which it acquired in 2015. (It is rare for a foreign company to own more than 10% of a state enterprise in Vietnam.)
Vinatex operates around 200 clothing factories in Vietnam. It has invested nearly US$200m over the past three years to add facilities for yarn and fabric production. The group now handles everything from material production to sewing.
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