The apparel sector plays a major role in Vietnam’s development, being the country’s 2nd largest exporting sector, contributing 16% to the country’s GDP and employing 2.5 million people.
Founded in 2016, Leading Star Vietnam Garment Company (Leading Star) is a manufacturer of sportswear, casual wear and children wear, which has quickly grown to become a successful garment company employing today more than 4,600 workers. The company is known for its commitment to ensuring good working conditions and a responsible use of resources.
Proparco’s $12 million loan will allow the company to expand its production capacity through the building of a new state-of-the-art factory and support the creation of 2,500 additional direct jobs by end of 2022. The funding will also be used to finance investments related to good working conditions, in line with the company’s Happy Manufacturing concept, and green initiatives: the new building will be powered by 1MW solar panels and equipped with a rainwater collection system.
This project should support more than 8,800 direct and indirect jobs, with c. 80% of them held by women. Due to the quality of Leading Star’s working conditions and its various commitments towards women empowerment and gender diversity, the project qualifies to the 2X Challenge, a global gender finance initiative Proparco has been contributing to since its launch in 2018.
This project will contribute to Sustainable Development Goals #5 (Gender Equality), 8 (Decent Work and Economic Growth) and 9 (Industry, Innovation and Infrastructure).