Vietnam: contributing to the responsible and sustainable development of the garment company Leading Star

Leading Star Vietnam Garment Company (Leading Star) is a major manufacturer of sportswear and casual wear for adults and children in Vietnam, with 42 million garments made in 2020. It exports to the USA and Europe for leading international brands, including Décathlon, its longstanding partner.

The project involves supporting Leading Star’s growth, firstly by financing the increase in its production capacity through the construction of a second factory with the highest standards, powered by 1 MW solar panels covering 35% of its needs, along with facilities to improve the quality of working conditions (anti-fatigue chairs…) and, secondly, the increase in its working capital requirements.  

The project is supporting growth in Vietnam’s garment sector, the country’s 2nd largest exporter which employs 2.5 million people. It is also contributing to saving resources (rainwater harvesting system, solar power generation). In addition, it should create 2,500 direct jobs over the next 5 years and support quality employment for women through its ambitious policy for women (80% of employees), which includes commitments for training and representation at all levels of the hierarchy. It is thereby contributing to the 2X Challenge, a global initiative dedicated to financing projects that contribute to strengthening the economic role of woman which PROPARCO has been participating in since it was launched in 2018.

The project is thereby contributing to SDG 9 “Industry, innovation and infrastructure”, SDG 8 “Decent work and economic growth” and SDG 5 “Gender equality”.