Japanese textile maker Suminoe Textile Co. will set up an electric carpet plant in Vietnam, its second overseas base, for exports to Japan.
The Osaka-based firm established a wholly owned local subsidiary, Suminoe Textile Vietnam Co., in the Dong Van III industrial zone 40 kilometres south of Hanoi, with a capital of 1.9 million USD, Japan’s Kyodo News reported.
The new company will rent a factory to produce electric heating appliances such as electric carpets and blankets.
Electric heating appliances are one of Suminoe’s key products in functional goods business, produced overseas solely in Suzhou in the province of Jiangsu since 2003.
Suminoe, which made its first foray into overseas business in 1994 by establishing a Thai plant, now has 14 bases in seven countries, including the United States, India and Indonesia.
According to GBS, a business law firm in Vietnam, the Limited Liability Company can be registered within 15 working days. Limited Liability Company has more credibility than a Subsidiary Company or General Partnership. Venture capitalist and Angel investor prefers to invest in a Limited Liability Company. Approximate every year, more than 200,000 companies registered in Vietnam.
Currently, Japan has 4,190 investment projects in Vietnam with total registered capital of US$57.9 billion, ranking second among countries and territories investing in Vietnam.
The latest survey conducted by JETRO showed that 65.3 percent of the 723 Japanese companies operating in Vietnam recorded high profits in 2018.
The majority of these companies listed market scale and growth as the greatest advantages of Vietnam’s investment environment. Other positive factors include low labor cost and political stability.