[Edaily Reporter Kim Hyung-il ] TBH GLOBAL(084870)announced on the 5th that it is securing its own production base for the first time since its founding and moving toward in-house production.

TBH GLOBAL has established TBH GLOBAL VN, a wholly-owned subsidiary in Vietnam, and secured local production facilities. The company’s strategy is to move beyond its previous reliance on external production bases, such as original equipment manufacturing (OEM), and build its own production system to enhance production capacity and supply chain operational efficiency.

The production facility, located in Phu Tho Province, Vietnam, covers a site area of 10,000 square meters (approximately 3,025 pyeong) and features a building area of 7,000 square meters (approximately 2,118 pyeong). Currently, seven production lines are in operation, and the facility’s design allows for expansion to a maximum of 10 lines. The annual production capacity for woven products is approximately 500,000 pieces. TBH GLOBAL plans to expand its annual production capacity to 600,000 pieces by adding equipment to improve productivity, such as automatic cutting machines and welting machines.

The key to securing this production base is the establishment of a Just-In-Time (JIT) system. The company’s vision is to use its own factory to enhance its ability to handle high-mix, low-volume production, reduce production lead times, and respond swiftly to changes in market demand. It also plans to implement a reorder system that involves proactively securing fabric and quickly ramping up production in response to sales trends.

The production facility specializes in women’s apparel. It has the capability to produce items with relatively high manufacturing complexity, such as jackets, coats, and blouses. TBH GLOBAL plans to allocate production volumes according to brand and product characteristics and expand the proportion of orders for its own brands at its in-house production facilities to 60–70%.

The company also expects to improve profitability and ensure supply stability. It believes that directly managing the production process will enhance the precision of inventory management and improve efficiency in production and distribution. It also expects to reduce intermediate distribution steps and minimize opportunity losses caused by missing sales windows.

The company will continue its existing OEM business in parallel. Since the newly acquired production facilities provide a solid operational foundation built through its existing OEM business, TBH GLOBAL plans to continue these operations while gradually increasing the proportion of production dedicated to its own brands. TBH GLOBAL VN’s financial results are expected to be reflected in the consolidated financial statements within the year.

The company also plans to integrate this initiative with its Artificial Intelligence Transformation (AX) strategy. The plan is to connect production, inventory, and quality management systems with the group’s proprietary AI system to boost production efficiency and cost competitiveness. By linking a system that directly manages the entire production process with lifetime after-sales service (A/S) and quality assurance policies, the company also aims to strengthen brand trust.

TBH GLOBAL intends to utilize this production base to strengthen the competitiveness of its existing brands, including MindBridge, Basic House, and Juicy Judy. The company also plans to use it as a key hub for the production of products and business expansion for the global brand “Time Out,” which is set to launch in November.

A TBH GLOBAL official stated, “Securing this production facility in Vietnam is a crucial foundation for concluding the restructuring we’ve been carrying out over the past few years and shifting to a full-scale growth trajectory,” adding, “We will simultaneously strengthen production efficiency and brand competitiveness by integrating our in-house production capabilities with our company-wide AX system.”