Nike supplier Feng Tay cancels $23 mln investment in Vietnam

Taiwan-based footwear giant Feng Tay Enterprises Co. Ltd., a supplier of Nike, has cancelled an additional investment of $23 million in Vietnam.

In a filing with the Taiwan Stock Exchange (TWSE), Feng Tay said the original decision, dated March 14, 2024, was to increase the capital of Vietnam Nam Ha Footwear Company Limited in the central coastal province of Binh Thuan.

Feng Tay clarified the latest decision was due to it "considering the changes in the relevant business environment."

According to its March 2024 decision, the investment was set for factory construction and equipment procurement of Vietnam Nam Ha Footwear.

Feng Tay started investing in Vietnam in 1996 and has become one of the biggest foreign investors in the country. It now operates seven factories in Dong Nai, Ba Ria-Vung Tau, and Binh Thuan provinces and employs about 73,000 people.

Vietnam Nam Ha footwear factory was inaugurated in December 2023, with an investment of $62 million. It has an annual capacity of 6.8 million pairs and accessories for three million pairs.

Footwear is a key industrial sector in Vietnam. The country earned $64.27 billion from exports in January-February, up 8.4% year-on-year, the General Statistics Office (GSO) reported. Footwear was the fifth-biggest cash earner in the period with $3.47 billion, up 10% year-on-year.

The top export earners were electronics, computers, and components with $12.54 billion; phones and components with $9.22 billion; machines, tools, and components with $7.7 billion; and apparel-textile with $5.63 billion.