Tan Chau Garment Import Export Co plans to reduce its reliance on subcontracts from foreign sources and raise the proportion of its own-brand items to 20 per cent of total output by late this year, said Nguyen Thi Loan, the company's deputy general director.

Clothing made with Tan Chau's own fabrics accounts for only 15 per cent of production, while the rest is manufactured under subcontract, she said.

Increasing the localisation ratio in the domestic garment industry would not be a difficult task, unlike accessing investment capital or finding more markets, she added. However, Tan Chau is still pressing ahead with a plan to raise loans to fund its domestic brand drive, and also intends to join forces with domestic fabric makers to produce clothing with the American market in mind.

The joint venture between Vietnam Textile and Garment Corp, Saigon Trading Corp, and Fashion Garment Co specialises in jackets and sportswear. Subcontracted orders for export account for some $10m in annual revenue.