Itochu raises stake in Vinatex with eye on Europe

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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.

For the full story, see the May 2018 edition of Textiles South East Asia. Not a subscriber? Sign up HERE


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