Hong Kong-backed footwear maker Freetrend Industrial Ltd is to build a second factory in Ho Chi Minh City's Thu Duc District - making it the biggest investor in this production zone.

The new $20 million facility will produce sports shoes, accessories and bags, with 81 per cent of its output intended for export markets.

Freetrend already operated a $50 million factory in the same area, processing Adidas and New Balance shoes for export to Europe.