Japan’s Itochu picks 10% more stake in Vietnamese textile group Vinatex

A line of garment processing in Vietnam (Source: Internet Archive)

Japanese general 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 for 5 billion yen ($46.9 million), the Nikkei Asian Review reported.

With this, Itochu’s holding in Vinatex will increase to nearly 15 per cent.

The Japanese trading firm earlier owned nearly 5 per cent of Vinatex after the textile group conducted its IPO in 2014. The Vietnamese government owns 53 per cent while real estate giant Vingroup owns 10 per cent in Vinatex.

Recently, VNTEX (formerly VID Group), which owned 14 per cent stake in Vinatex, sold 35 million shares, reducing its ownership to 7 per cent in the textile group.

Established in 1995, Vinatex is the largest textile group in Vietnam. It has 83 subsidiaries and affiliates, with approximately 120,000 employees, handling both upstream and downstream operations.

Since its 2015 investment, Itochu has collaborated with Vinatex on suits, shirts and functional undergarments for cold weather. The trading firm plans to boost production of high-performance apparel in Vietnam and export the output to Japan, Europe and the US.

It aims to increase outsourced production and raise exports to 100 billion yen ($944 million) by 2021, the Japanese portal said.

Vinatex’s net revenue in 2017 was estimated at VND17.5 trillion ($766 million), an increase of 13.2 per cent over the last year while net profit stood at VND634 billion ($27 million), up 9.5 per cent year-on-year.

Also Read:

Vingroup takes over Vinatexmart, plans aggressive retail expansion across Vietnam

Vinatex plans $441m investment after IPO

Itochu to sell stake in Chinese food major Ting Hsin for $440m

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.