Itochu says Vietnam is “an important area” in Asia to invest in textiles

Itochu says Vietnam is “an important area” in Asia to invest in textiles

Vietnam National Textile and Garment Group (Vinatex) has signed a memorandum of understanding with Japan's Itochu for the development of new projects and textile dyeing and finishing materials in Vietnam.

The MoU, which was signed in January, will see the expansion of business projects, the development of new materials, and cooperation in the field of personnel training in Vietnam's textile sector. In particular, it will allow Itochu to utilise Vinatex's capacity with regard to textile factories in the central region.

He Shimizou Motonari, CEO of Itochu Asia, said Vietnam is “an important area” in Asia to invest in textiles, especially on conclusion of the Trans-Pacific Partnership (TPP), which is expected to open up huge opportunities for Vietnam's garment and textile industry.

The agreement and is expected to generate revenues of around US$60m, creating thousands of new jobs. It is also expected to contribute to an expansion of the Vietnamese textile market through investment in advanced technology, particularly in knot textile finishing.

Itochu Corporation is one of the largest conglomerates in Japan, employing over 4,200 staff, with chartered capital of $2bn and a presence in 139 countries, including Vietnam.