Japanese trading firm Itochu Corporation has become the second largest shareholder of Vietnam National Textile and Garment Group (Vinatex) after picking up an additional 10 per cent stake. With this, Itochu’s holding in Vinatex will increase to nearly 15 per cent. Established in 1995, Vinatex is the largest textile group in Vietnam. It is a state-owned textile company. As Vietnamese clothing companies rapidly expand exports, Vinatex is becoming their standard-bearer.
Vinatex has 83 subsidiaries and affiliates, with approximately 1,20,000 employees, handling both upstream and downstream operations. Since its investment, Itochu has collaborated with Vinatex on suits, shirts and functional undergarments for cold weather.
Vinatex’s net revenue in 2017 rose 13.2 per cent over the previous year, while net profit was up 9.5 per cent year-on-year. The Vietnamese government owns 53 per cent while real estate giant Vingroup owns ten per cent in Vinatex. Itochu plans to boost production of high performance apparels in Vietnam and export the output to Japan, Europe and the US. It aims to increase outsourced production and raise exports to 944 million dollars by 2021.
Itochu engages in trading various products such as textile, machinery, metals, minerals, energy, chemicals, foods, general products, realty, information and communications technology, and finance.