Luthai Textile, Chinese textile and garment manufacturer, is setting up its spinning, weaving, dyeing and garmenting operations in Vietnam. The company is investing around US $ 0.18 billion for the project (inclusive of 60,000 spindles) in the country, reports ccfgroup.com.
The project, which will introduce high-end and intelligent equipment and enrich the industrial chain of Luthai in Vietnam, will soon start production. Under the venture, the to-be-operational unit will have the capacity of dyeing 3 million metres of fabric while producing 6 million pieces of shirts.
The manufacturer reportedly decided to invest in the country – firstly to expand its garment production base, which in turn will increase and improve investment returns for the company; and secondly to take advantage of lower local labour costs in Vietnam, leading to reduction in overall cost of production.
Also Read – Vietnam zooms past China as ‘top’ manufacturing location
The company is also exploring other emerging markets of Southeast Asia, like Myanmar and Cambodia. It started expanding in the regions around three years back with an investment of around US $ 30 million. Its production units in both the countries are already operational. While in Cambodia, Luthai is targeting production of 3 million pieces of shirt this year, in Myanmar it aims to produce 1 million pieces.
Luthai Group is a vertically integrated company, which is engaged in spinning, dyeing, weaving, finishing and shirts manufacturing. It sells its products within domestic market and to overseas markets, like Japan, South Korea, Hong Kong, Southeast Asia, Europe and the Americas, inter alia.
