Esquel Enterprises (Singapore) Pte, a subsidiary of Hong Kong based clothing giant Esquel Group, has begun construction on a US$25m apparel plant at the Luong Son industrial zone in the northern Vietnamese province of Hoa Binh.

The project is divided into two phases, with the first having an annual capacity of 7.2m garments and set to begin operation in November 2012 with 2,800 workers. The second phase will begin in 2017 with an expected capacity of 11.52m garments a year.

According to the Esquel Enterprises (Singapore), all products made at the plant will be exported to the group's international brand clients including Hugo Boss, Lacoste, Marks & Spencer, Nike, Ralph Lauren and Tommy Hilfiger.

This will be Esquel Group's third plant in Vietnam, and joins its existing 12-year-old facility in Binh Duong province which employs 3,900 employees as well as another factory in Dong Nai Province with 1,400 employees.