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Vietnamese Manufacturer Invests $16 Million in Factory Expansion to Meet Growing Demand

Vietnam’s growing importance as a global apparel supplier has meant necessary expansion for suppliers looking to deliver on the industry’s demands.

Sourcing experts have said that the country’s facilities are top notch, but have questioned whether Vietnam could soon lose momentum if it can’t grow its factory base. In recent years, Vietnam has emerged as one of the world’s largest textile suppliers, with a total exports of more than $36 billion. In 2018, U.S. imports from Vietnam rose 5.78 percent to $12.22 billion.

The problem, however, is that Vietnam may run into capacity issues.

MXP JSC, one of Vietnam’s leading apparel manufacturing and exporting companies, however, is doing something about that. The company has started construction of its seventh factory, in Thai Binh province. The MXP7 factory will cover roughly 860,000 square feet at a total investment of $16 million. Completion of the project is expected in the first quarter of 2020.

The move is an important one for MXP JSC to increase its production capabilities, and to apply advanced production technology to meet its aim of becoming the most prominent “smart factory” in Vietnam’s textile and apparel industry.

MXP said it’s focused on applying Industry 4.0 technology in software operations, including systems for manufacturing, sourcing, automation of data entry and reporting systems. In the MXP7 factory, these systems will be upgraded, resulting in higher performance and improved quality.

Equipped with a modern production-line system with a capacity of 2 million products per year and a full workforce of up to 3,500 people, MXP7 is a key project in the company’s ongoing strategy of high-tech investment. By 2030, MXP plans to double its employees from 15,000 to 30,000, and upgrade its capacity to 20 million from 10 million products annually.

“The construction of MXP7 in 2019 is a major turning point to ensure the annual export turnover of MXP in particular and the textiles market in general,” MXP sales director Tran Quang Hao, said. “We are one step ahead in the long-term development strategy to expand MXP globally and become a trusted, quality supplier to the world’s leading corporations.”

MXP produces for brands like The North Face, Lululemon, Under Armour, Patagonia, GAP, Marmot and REI. Products made by MXP are regularly sold in the U.S. and Canada, and are reaching into Europe and Asia.