Expansion of manufacturing networks
Business Alliance with VINATEX in Vietnam
|VINATEX sewing factory|
ITOCHU has concluded an agreement for a strategic business alliance with the Vietnam National Textile and Garment Group (VINATEX), a Vietnamese state-run textile company group, by acquiring shares in the company.
Established in 1995, VINATEX is the largest textile company in Vietnam. It has 83 subsidiaries and affiliates, with approximately 120,000 employees, and handles operations from the upstream to downstream processes in the textile industry. ITOCHU and VINATEX have maintained a steadfast relationship that stretches back to the time when the two companies began OEM-related apparel transactions in the 1990s. ITOCHU positions Vietnam as one of its most important operation bases because the country has attracted significant attention as the next major manufacturing locale after China. The reinforced partnership with VINATEX - the largest textile company group in Vietnam - is expected to generate a wide range of synergetic effects, such as increased trade on the back of favorable customs duties under free trade and other agreements, as well as create a number of new businesses. For these reasons, ITOCHU has decided to conclude an agreement for the alliance.
In the future, ITOCHU will move forward with measures to strengthen the sales of textile products in Europe, the United States, and Asia - including Japan and China - while making the most of the VINATEX Group’s strong textile manufacturing bases in Vietnam and its own global network. Through this move, we aim to further enhance its corporate value and expand our business.