Garment manufacturer Quang Viet Enterprise Co (廣越) yesterday said it is to open a new plant in Vietnam to increase production capacity, as its lines there cannot meet targets.
“Work on the new plant in Vietnam is to be completed by the end of this year,” Quang Viet president Charles Wu (吳朝筆) said at an earnings conference ahead of the firm’s listing on the Taiwan Stock Exchange next month.
Wu said the company would also add 15 production lines to two existing plants in Vietnam next year to satisfy customer needs.
The firm’s operations in Vietnam mainly produce high-priced down jackets for international sportswear brands, including Nike, Adidas, Patagonia and The North Face.
Combined with a factory in Jiaxing, Zhejiang Province, China, Quang Viet boasts 305 production lines, which are capable of making 850,000 units of clothing per month, company data showed.
The Taipei-headquartered firm said it aims to take advantage of Vietnam’s zero-tariff policy from free-trade deals to maintain its competitiveness.
A member of Trans-Pacific Partnership, Vietnam has also inked free-trade agreements with China and the EU.
Amid soaring labor costs in Vietnam, Quang Viet plans to invest more on automated sewing and filling machines, as automated production only contributes about 15 percent to the company’s total capacity at present, it said.
Quang Viet’s revenue decreased 1 percent to NT$1.5 billion (US$47.7 million) last month from a year earlier, dragged down by foreign currency exchange rate fluctuations.
“We plan to add three to five brand customers every year, which could substantially benefit the company’s sales and profits in the future,” Wu said.
Next year, Quang Viet is to start production for new customers, including Aigle, Moncler and Under Armour Inc, he said.
The company also hopes to stimulate sales by cooperating with luxury brands — especially customers from Europe — and plans to launch new products next year to further diversify its product mix, he said.
“We are working on the research and development of functional knitwear,” Wu said.
Last year, revenue from down jackets made up 55 percent of the company’s sales, while resin cotton jackets accounted for 32 percent, the company said.
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