Lao men's suits in high demand in Japan
Lao men's suits in high demand in Japan
The Japanese market, one of the leaders in fashion and clothing design in Asia, is buying large numbers of men's suits made in Laos.
KB Yagi Lao Company Limited, owned by a Japanese investor, is a major producer of suits which it is solely exporting to Japan.
Company Deputy Director Ms Sapphasine Phonesavanh told Vientiane Times last week that Japanese customers order about 100,000 suits on average per year, which is the full capacity of the company's production.
This year they will export around 100,000 suits against orders they received in 2013. The firm gets its orders one year ahead so that it does not have a problem with production planning and supply of materials.
KB Yagi Lao Company Limited established its first factory in 2010 in Naxaithong district, Vientiane and started to receive a lot of orders from customers in Japan.
In the beginning the company expected to export its suits to markets in Italy and USA but it found there was such a growing demand in Japan they switched to concentrate on the Japanese market instead.
As the orders kept coming in, the company decided in 2011 to build another factory in the same district to increase production capacity. The entire production from both factories is for export only.
The import of raw materials and fabrics depends on the orders they receive. Currently, the company brings in its supplies from Japan, Taiwan and Beijing.
The company is employing more than 600 workers in both factories, but it needs more. The proportion of female workers is higher than males.
Ms Sapphasine said that current exports have increased by 20 percent compared to their first two years of business. The company earns about 20 billion kip per year.
The producer predicts that the orders coming from Japan will continue to rise because the way of life and style of dress of almost all Japanese men is closely related to the wearing of a suit.
The company is now planning to build more factories in an effort to expand its production so it can resume its exports to markets in the EU and USA.
Japan is among the top foreign direct investment countries here and is also a major donor for development in Laos. Business people from there are seeking investment opportunities in many places in Laos and see this country as a new production base.
Ms Sapphasine said that the interest in Laos by Japanese investors is still high but the problem is a shortage of workers. If the country can supply enough manpower, more businesses will come here.
The labour shortage is a general issue that many factories and companies are facing. The transitory nature of workers here impacts on the efficiency of industry, including the quality control of basic materials. If factories have stable and skilled workers, the output and quality of products will get better, she commented.
A Japanese economic expert projected that within the next two years, Japan will climb in the rankings from 6th to 4th largest for foreign investment in Laos after China, Vietnam and Thailand. The Japanese investors will focus on manufacturing, services and agro-forestry.
The value of Japanese investment in Laos in 2013 reached US$405.7 million, increasing by a factor of almost 15 compared to the year before.
vientiane times
