Lectra opens subsidiary in Vietnam
08/07/2016
“Thanks to 5.5% growth in the first quarter of 2016, Vietnam is one of south-east Asia’s most dynamic economies,” said Lectra chief executive, Daniel Harari, on announcing the development. “It is a top choice for manufacturers who focus on production costs and brands seeking to diversify supplies.”
He went on to say that the Trans-Pacific Partnership (TPP) free trade agreement, signed in February 2016, will “reinforce the attractiveness” of Vietnam. He said Lectra has many customers there, including large Asian companies.
Mr Harari also said that the apparel industry is “especially vibrant” in Vietnam. Clothing exports reached $21 billion in 2014 and should grow by 8% to reach $29.5 billion in 2016, according to Lectra’s estimates.
Of the 6,000 textile and apparel companies active in Vietnam, a large number are owned by Chinese, Hong Kong, South Korean, Japanese and Taiwanese companies operating out of Vietnam to take advantage of lower manufacturing costs. Lectra’s assessment is that many of these companies are interested in investing in its software, automated cutting equipment and associated services to help them improve the quality of their products, the efficiency of their operations and the productivity of their factories.
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