Shikibo Ltd. is expanding its operations in Vietnam, and will increase items in Vietnamese knitwear production.
According to a Shikibo official, casual wear is the main item, and the company plans to expand the items to include uniforms from the second half of the current fiscal year.
Shikibo has shifted the production of knitwear to Vietnam from China, where profits have been worsening. This shift has proven to be successful, and Vietnam has come to account for 80% of the company’s knitwear production.
In the second half of the current fiscal year, Shikibo has plans to expand knitwear production in Vietnam to an annual scale of 1.3-1.4 million units.
In addition to casual wear, the company will enlarge production items in service uniforms. Since yarns of which production is outsourced in Vietnam now come in a wider variety, it will increase their use in its products and strengthen yarn sales.
While production in Vietnam is being expanded, production in China will be maintained at a certain scale, as China is necessary in order to meet requirements in terms of variety, small lots and delivery deadline.