Vinatex and Itochu sign strategic co-operation agreement

Viet Nam Textile and Garment Group (Vinatex) on Monday signed a strategic co-operation agreement with Japanese firm Itochu, witnessed by PM Nguyen Xuan Phuc and his Japanese counterpart Shinzo Abe in Ha Noi.

Itochu is expected to help Vinatex make a change in textiles and garment production and business method from Cut—Make—Trim to Free on Board, developing a sustainable retail distribution network to enjoy long-term benefits.

Under the agreement, trading firm Itochu will assume the role of a consulting partner for Vinatex and its member companies in developing the textiles and garment supply chain from fibre to thread, fabric and sewing, retail distribution, co-operation and introducing domestic and foreign partners.

Shuichi Koseki, senior managing executive officer, manager of CP·CITIC Strategy Office, president of Textile Company and representative director, said Viet Nam’s textiles and garment were an important part of Itochu, therefore it wanted to develop this area with Viet Nam, so that Vinatex could become its number one partner.

In the near future, he said Itochu would boost co-operation between the two sides to develop textiles and garment products and supply them globally.

Speaking at the signing ceremony, Le Tien Truong, general director of Vinatex, said the two sides would discuss in detail the co-operation plan and implement actions immediately to make a change in Vinatex’s textiles and garment production and business method from Cut—Make—Trim to Free on Board, developing a sustainable retail distribution network to enjoy long-term benefits.

Itochu signed a framework agreement to support several projects in dyeing and materials production in Viet Nam, training in the country’s dyeing sector and utilising the capacity of Vinatex’s dyeing factories in the central region in 2015.

At that time, Itochu owned five per cent stake in Vinatex through a subsidiary company.

Itochu, one of the leading economic groups in Japan operating in various areas, including textiles and garment, has co-operated with some 100 textiles and garment companies of Viet Nam.