(Yicai Global) Dec. 11 -- Chinese knitwear maker Jasan Holding Group plans to invest USD65 million to build two factories in Vietnam so it can benefit from local tax and labor laws and avoid potential hikes to trade tariffs against its home country.
The Zhejiang-based firm will use USD29 million to open a cotton socks production line making 90 million pairs a year, and the remainder to build a knitted sports underwear factory with annual output of 18 million units, it said in a statement on Dec. 10.
Jasan's revenue from the United States was up nearly 120 percent annually in the first half of this year, according to its interim report. Due to rapid growth in the market and fears that the China-US trade tiff could lead to additional tariffs being slapped on Chinese socks, the company said it would shift American orders to Vietnam to avoid the additional rates.
The firm originally planned to build the sock plant at the industrial zone in Hung Yen province, making 65 million pairs a year. But rising demand for its seamless knitwear has led the firm to build the other factory there and open its sock factory elsewhere.
Editor: James Boynton