Garment firms making major expansions
Garment firms making major expansions
As competition between textile and garment producers and exporters heats up, several have invested into increasing their production lines to expand their potential markets.
Since early this year, Hue Textile Garment Joint Stock Company (Huegatex) has pumped $2.3 million into machinery and equipment to diversify their production, reported a source inside the company.
The company expanded from eight production lines to 50 to boost their export potential.
“Based on our current signed orders, Huegatext envisions reaching our annual export target of $66 million ahead of schedule,” said the company’s deputy general director Ho Van Dien.
In the first eight months of 2013, Saigon Garment Manufacturing Trading JSC (GMC) marked revenues of $43.3 million with profits of $2.4 million.
“If things continue to go smoothly, we will have completed our annual businesses targets of $52.3 million revenue and $2.9 million profits early this year, by mid-November,” said a company source.
GMC is also considering hiking its production by 25 per cent in 2014.
According to company chairman Le Quang Hung, GMC will install six more production lines at its second-phase export garment facility in Ba Ria-Vung Tau province, and six more at its Quang Nam plant.
By 2015, the company’s production is expected to increase by 70 per cent.
GMC’s next benchmark is to transition from the original equipment manufacturer (OEM) model to original design manufacturer (ODM), a value-added system that is expected to propel the company’s revenue to $100 million by 2018.
Hoa Tho Textile Garment JSC in Danang city in the central region is also considering a $6.6 million injection into production capacity this year.
The capital would go into a suit production line valued at $1.4 million, a $950,000 garment plant, and fibre investments totalling $1.9 million, as well as other improvements and expansions.
“To advance our competitiveness in the coming years, increasing production and implementing innovative technology and equipment is a must. There is growing competition between textile clothing firms and that is pushing us to improve,” said Hoa Tho’s general director Tran Van Pho.
Advisor to the Vietnam Textile and Apparel Association Le Quoc An said that Vietnam has great potential in the textile and garment industry and major world markets held its supply capacity and garment quality in high regard.
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