Vietnam to make Reebok

Vietnam to make Reebok

HANOI (AFP): A Ho Chi Minh City shoe manufacturer has signed a US$7million deal with U.S.-firm Reebok to produce 650,000 pairs of sports shoes for the U.S. market, a news report said yesterday.

The first consignment of Vietnamese-made Reeboks -- made by Hiep Hung Shoe Co. in the southern hub -- has already been sent to shoe stores in the United States, the Vietnam Investment Review (VIR) said.

The order was set up through Reebok's Thailand representative office, it added.

Hiep Hung Shoe Co. is also negotiating a $70-million contract with Reebok to make a further six million pairs of shoes for American consumers next year, the weekly added.

The Vietnamese shoe producer hopes to get a 12 million-pair order for 1997, although its production line is currently unable to meet such a target.

The company still needs $2 million to set up six new production lines to meet next year's quota and its working capital will have to be raised from $1.5 million to $8 million to $10 million, VIR said. The first new line is expected to start by mid-July.