Japanese garment manufacturer Matsuoka Corp is to set up a new $3m production facility in Vietnam as it looks to lessen its reliance on China.

The company will set up a new wholly-owned subsidiary called Annam Matsuoka Garment Co to operate the plant in Nguyen Province "near the central part of the country to promote production capacity expansion in Vietnam." The facility will make apparel on an original equipment manufacturer (OEM) basis.

The plant is the fourth in Vietnam for Matsuoka. Its Bac Giang Matsuoka factory produces jackets, bottoms and blouses, while its Phu Tho Matsuoka factory produces men's trousers. JDT Vietnam specialises in processing urethane film on fabric, and special functionality such as waterproofing and water repellent required for sports, outdoor and casual clothes are made at this factory. 

Local press, citing a spokesperson for the company, say it is hoping to begin operations at the new plant "at an early date."

The spokesperson added the firm's medium-term business plan calls for reducing its reliance on China to around 50% by March 2021 by shifting its focus to Vietnam from China, where production costs are on the rise.

According to Matsuoka's website, it manages eight plants in China, along with two in Myanmar, two in Bangladesh, and one pending in Indonesia.

The company's plans tally with wider trends of Japan-based clothing brands to diversify their sourcing away from China-based manufacturing facilities in recent years – as reported on just-style earlier this month. Click on the following link to find out more: Japanese clothing firms reducing reliance on China