Eclat to reduce its reliance on Vietnam
15/07/2019
The company, which supplies sportswear for brands like Nike and Lululemon, previously had a large manufacturing base in China, but it closed its last facility there in 2016, citing a shortage of local manpower. It instead moved the bulk of production to Vietnam, which benefits from a number of beneficial trade arrangements with its important markets. However, diversification now appears to be the order of the day.
“Judging from the global situation, the most important thing now is diversification,” said Eclat chairman Hung Cheng-hai. “Clients also want us to diversify risks and don’t want production bases to be in one country. Now 50% of our garments are made in Vietnam, so we are not diversified enough.”
Mr Cheng said Eclat will not open new plants or expand existing plants in Vietnam in the next three years. Instead, it plans to invest in new facilities in Indonesia and Cambodia, although the specific locations have not yet been decided.
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