Itochu pays US$47mn to raise stake in Vinatex

Itochu pays US$47mn to raise stake in Vinatex

Vinatex has invested nearly $ 二00 million to develop facilities for thread and cloth production over the past three years. The company now handles almost everything from material production to sewing. — VNAVNS Photo

HÀ NỘI – Itochu, Japan’s second-largest trading company, has spent some five billion yen (US$ 四 六. 九 million) to buy an additional  一0 per cent equity in Việt Nam National Textile and Garment Group (Vinatex).

This was reported by Nikkei.

The purchase has raised Itochu’s stake in Vinatex to  一 五 per cent, making it the second-largest stakeholder after the Ministry of Industry and Trade (which represents State capital in the garment group).

Earlier, Itochu had acquired roughly  五 per cent stake in Vinatex in its initial public offering in September  二0 一 四.

The decision to raise its stake in Vinatex reflects Itochu’s desire to make Việt Nam a textile export hub for the European market amidst rising labour costs in China, Nikkei reported.

Vinatex operates some  二00 sewing factories in Việt Nam. It has invested nearly $ 二00 million to develop facilities for thread and cloth production over the past three years. The company now handles almost everything from material production to sewing.

In  二0 一 七, Itochu and Vinatex agreed to sign a contract to develop a supply chain ranging from fibre and thread to cloth and retail.

Itochu pays US$47mn to raise stake in Vinatex

Earlier in  二0 一 五, Itochu cooperated with Doximex, Vinatex’s subsidiary operating in dyeing and accessories. The deal is expected to boost the production of high-performance apparel in Việt Nam and export output to Japan, Europe and the United States.

The Japanese trading house may also collaborate with Vinatex to produce sportswear.

Itochu exports apparel from Việt Nam worth some  六0 billion yen per year, half of which is produced by Vinatex. The company aims to raise outsourced production and exports to  一00 billion yen by  二0 二 一.

This figure is based on the fact that Việt Nam has signed a free trade agreement with the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership with  一0 other countries.

Vinatex’s shares are trading on the Unlisted Public Company Market at some VNĐ 一 五,000 ( 六 六 cents) per share. – VNS

Itochu pays US$47mn to raise stake in Vinatex

 

TOP