Despite a recent spat over territorial dispute between Chinese and Vietnamese ships in the South China or Eastern Sea yet companies from Taiwan or other places in Asia, the country remains a hot investment destination. The unrest hasn’t affected Hong Kong-based manufacturer TAL Group, the world’s biggest producer of men’s wear, selling shirts to brands such as Brooks Brothers, L.L.Bean, Eddie Bauer, and Burberry.
The Group is looking at increasing its investments in Vietnam to increase its production from 12 to 15 per cent to 25 per cent, over the next two years. Apart from garment making, the company is also investing in a new business to make textiles in the country. In fact, many other companies too are exploring Vietnam as a low cost and good investment option for manufacturing against China, where production and labour costs are on the rise.
For now, TAL relies on Chinese factories for the bulk of its production. Out of a total workforce of 25,000 people, TAL has about 7,000 to 8,000 workers in China, and the country accounts for about one-third of the group’s total production.
www.talgroup.com
