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    Lu Tai A Throws 150 Million US Dollars To Set Up Factories In Vietnam

    2015/3/11 11:14:00 22

    Lu Tai AVietnamSet Up Factory

    Following the exploratory investment in Kampuchea and Burma, A has invested heavily in overseas construction.

    The company announced on the evening of 6, the company intends to set up a company in Vietnam by wholly-owned subsidiary Lu Tai (Hongkong) Co., Ltd., the company will build third overseas production bases in Vietnam.

    According to the announcement, Lu Tai (Vietnam) Limited registered capital of 10 million US dollars, with a total investment of US $150 million, accounting for 14.38% of the latest audited net assets of listed companies.

    The content of the project is also different from that of the previous shirts. Instead, it is invested in the construction of 60 thousand spindles spinning and the annual production of 30 million Beige woven fabric production line. The yarn dyed fabric is the core product of the company, and the company is the largest yarn dyed fabric base in the world.


    Prior to this, the company's overseas strategy has achieved some results.

    Considering the use of overseas low-cost labor force, in December 2013, the company announced that it invested $8 million to set up a wholly owned subsidiary in Kampuchea, mainly engaged in the processing and sales of shirts. Thereafter, an additional $12 million investment was added to increase the scale of production to 6 million.

    In July 2014, the company did the same thing.

    Investment

    $1 million to set up Lu Tai.

    Myanmar

    Ltd., Ltd. is still located in the processing and marketing of shirts.

    Prior to the investigation, the company said that the production capacity of 3 million shirts in the first phase of the Kampuchea project was put into trial production at the end of August 2014, and began to take orders. The 3 million phase of the 3 million shirts processing capacity will be put into operation in the 3-4 quarter of this year. Burma's 3 million shirts processing capacity is expected to be put into operation at the end of this year.

    Insiders said that domestic labor costs continue to increase, the RMB appreciation, imports

    cotton

    Quota restrictions have led to higher cost of raw materials for domestic textile enterprises. The cost advantage of China's textile and garment industry has been gradually lost in exports. Major textile and garment importing countries such as the United States and Japan have substantially reduced their orders in China. In addition, enterprises also take into account factors such as reducing trade friction and evading tariffs. Finally, the phenomenon of Chinese textile and garment enterprises moving to factories in Southeast Asia, such as Vietnam, Burma, Kampuchea and Bangladesh, which has more advantages in labor cost, has gradually become a trend.

    However, the textile industry who has extensively investigated overseas investment destination also indicated that although the advantages of textile and apparel industry in Southeast Asia and other regions began to appear, they should also be highly cautious. Local political instability, incomplete industrial chain, limited capacity to undertake large-scale textile equipment, low labor productivity and cultural differences may lead to investment risks, resulting in reduced investment efficiency and even investment failure.


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