South Korean company Daewoo International Corp has inaugurated a new USD2.85 million garment factory in Vietnam's Khai Quang Industrial Zone, which is located in the northern province of Vinh Yen.

The factory, which is called Daewoo Apparel Vietnam, will export 30 per cent of its goods to the US, it has been reported. Daewoo Apparel has a monthly output capacity of 20,000 pieces and will make items such as woven shirts and jackets.

Daewoo is said to have selected Vietnam as the base for the plant due to clear infrastructure improvements there as well as its skilled workforce and decreasing manufacturing costs.