With constant challenges posed by a rapidly globalizing economy and the ensuing consolidation of the apparel industry, Luen Thai constantly reinvents and reengineers its business model to maintain and improve its position as a leading apparel and accessories supply chain service provider with an end-to-end value proposition. With this goal in mind, Luen Thai acknowledges the strategic value of developing partnerships with suitable players in the industry.
Guided by its corporate values of integrity, trustworthiness, diligence and dedication, Luen Thai’s efforts in seeking, developing and nurturing partnerships are guided by the following factors that have shaped its business success throughout the years.
- Create efficiencies through reinvention
- Maintain good corporate citizenship
- Broaden and develop product base
- Strengthen customer relationships
Vietnam as next preferred OEM location
With the signing of the European Union-Vietnam Free Trade Agreement in 2015, Luen Thai is actively moving towards Vietnam as its next preferred location of original equipment manufacturer (OEM) production due to geographic advantage and duty savings from trade agreements.
Expansion of bag production capacity in the Philippines and Cambodia
The passage of U.S. GSP UPDATE Bill provides U.S. GSP beneficiary countries, which include the Philippines and Cambodia, with duty free access of travel goods to the U.S. markets. In addition, the Philippines and Cambodia are also entitled to export bags to the European Union, Japan and China with zero duty under different GSP arrangements and free trade agreements.
In order to seize the opportunities, Luen Thai is expanding its bag manufacturing business in these two countries through developing new capacity and converting some apparel manufacturing facilities for bag production.