Japan’s stationery supplier King Jim Co. Ltd plans to build its third plastic paper file factory in Vietnam by late 2016, the firm said.

The 9,000-square-metre plant is expected to be built at a cost of 700 million JPY (5.88 million USD) near the existing two in southern Binh Duong province.

In addition to facilities in Vietnam, King Jim also has a factory in Indonesia and has authorised a China-based company to produce 4 million products a year.

It is set to reduce the manufacturing of 3 million products in China when the new plant—capable of producing 14 million paper files a year—becomes operational.

A King Jim representative said Vietnam’s labour cost is one third of China’s, adding that the new factory will help improve its competitiveness.

In the Japanese market alone, paper file sales in 2014 rose by 20 percent from the previous year to 53 billion JPY (445.37 million USD), indicating a need for the company to expand its operations to meet domestic demand.-VNA