Taipei, June 26 (CNA)
Far Eastern New Century Corp., one of Tawian's leading textile makers, said Friday that it is planning to invest NT$10 billion (US$323 million) in Vietnam, aiming to transform the Southeast Asian country into the company's third production base after Taiwan and China.
In an annual general meeting held Friday, Far Eastern Vice Chairman Johnny Shih said that the company will send representatives to Tinh Binh Duong, a province located in southern Vietnam immediately to the north of Ho Chi Minh City, to sign an agreement to purchase a piece of land in an industrial park for the construction of a new facility.
Shih said that Far Eastern has been running a factory in Tinh Binh Duong since 2007, and will expand its production base in Vietnam to build a large-scale, all-in-one facility there, covering upstream, middle stream and downstream textile products.
In the first stage of the investment process, Shih said, Far Eastern will roll out yarn products, and then the new facility will enter dyeing services and finally produce ready to wear garments. The executive said that the investment will guarantee Far Eastern's ambitions to build a world-class production base in Vietnam.
In addition to the planned NT$10 billion investments in Vietnam, Far Eastern Chairman Douglas Hsu told shareholders that his company will continue to invest in Taiwan and China with an additional NT$10 billion in funds.
Hsu said that although Far Eastern has invested a large sum of funds overseas, the company is determined to stay in Taiwan instead of moving abroad since the textile maker is rooted in the country.
Hsu said that the investments in China and Vietnam have been made and planned simply based on consideration of where its buyers are. Echoing Hsu, Shih said that the new investment project in Vietnam is positioned to help Far Eastern seize business opportunities expected to arise from the proposed Trans-Pacific Partnership (TPP) trade bloc.
As for the planned investments in Taiwan and China, Shih said that Far Eastern will focus on a wide range of products, including polyester cotton, polyester chips, and nylon.
In the Friday meeting, shareholders approved a company proposal to issue a NT$1.2 cash dividend and a NT$0.2 stock dividend per share for 2014, when Far Eastern posted NT$235.5 billion in sales and NT$11 billion in net profit or NT$2.25 in earnings per share.
In the first quarter of this year, Far Eastern recorded NT$2.6 billion in net profit, up 45 percent from a year earlier. (By Wei Shu and Frances Huang)
Taipei, June 26 (CNA)