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Vinatex and Itochu Agreement Boosts Vietnamese Production

Vietnam National Textile and Garment Group (Vinatex) and Japanese trading firm Itochu have signed an agreement to support a number of dyeing and materials production projects in Vietnam.

According to Vietnam Breaking News, the agreement, signed January 15, is a marked growth in the business relationship of the two groups because it allows for training opportunities in Vietnam’s dyeing sector and takes advantage of Vinatex’s dyeing factories in the central area.

Shimizou Motonari, general director of Itochu Prominent in Asia, said that Vietnam was an important country in Asia for investing in garments and textiles, specifically because of free trade agreements (FTAs) and the Trans Pacific Partnership.

The projects are predicted to reach a total revenue of $60 million in five years and create thousands of new jobs. The agreement would also help Vinatex invest in advanced technology to benefit the entire country’s textile industry.

Itochu, which currently does business with 100 Vietnamese garment and textile companies, bought a 5 percent stake of Vinatex for more than $9 million through a subsidiary company in October.