Matsuoka will establish a wholly-owned subsidiary, Annam Matsuoka Garment Co., possibly in August to build and operate the new plant in the north-central province of Nghe An.

The new plant is Matsuoka's fourth plant in Vietnam after one each in the northern provinces of Phu Tho and Bac Giang and the southern province of Binh Duong.

Matsuoka spokesman Michihiro Fukagawa told NNA/Kyodo news said the corporation hopes to begin operations in Nghe An at an early date.

China accounted for about 60 percent, Bangladesh 25 percent and Vietnam 10 percent of the Hiroshima prefecture-based company's overseas sales in the fiscal year through March this year.

The firm's medium-term business plan calls for reducing its reliance on China to around 50 percent by March 2021 by shifting its focus to Vietnam from China, where production costs are on the rise, Fukagawa said.

Matsuoka sees Vietnam as a key production base for casual apparel bound for Japan and China, the spokesman said, adding the firm's Bangladesh arm manufactures inner wear and working wear.