Vietnam-based Cam Hung Fabric and Fibre Company has succeeded with a bid to buy Long An Textile Company for VND102.2bn (US$6.375m).

"Buying Long An textile is a key step in our expansion plan. This addition will help us strengthen production capacity with trained and experienced labour forces," Nguyen Thi Cuc, representative of Cam Hung, said.

Long An is known as the elder statesman of Vietnam's textile and garment industry, with its clothes and trademark well-known even during Vietnam's economic isolation in the 1990s.

It produces fabric, fibres and other materials. In addition, Long An produces clothes, together with weaving, dyeing and finishing operations.

After almost 20 years in the business, the company went into bankruptcy on 15 July 2004, having faced year-on-year losses in production and trading worth VND90bn, together with a great amount of debt to local banks. Earlier talks to sell the company were abandoned in 2005.

By Ngo Tuan.