Interview with Gregory Rabitsky

Seldat offers an immediate opportunity to start garment production in Vietnam

As global brands diversify their sourcing strategies, Vietnam has emerged as a key manufacturing hub—now second only to China in garment exports. Capitalising on this momentum, Seldat Vietnam is advancing a high-potential investment opportunity through three strategically located industrial sites in Binh Dinh Province. Offering both immediate production capacity and long-term scalability, the project is tailored for investors and operators seeking a foothold in one of Southeast Asia’s most dynamic regions.

In this exclusive conversation with Fibre2Fashion, Gregory Rabitsky, Manager and Director of Real Estate & Construction at DD1 Development LLC Seldat, shares insights into the phased development strategy, infrastructure readiness, partnership flexibility, and the broader geopolitical and supply chain context shaping the initiative. With over 30 years of global real estate and construction experience and multiple billion-dollar projects under his belt, Rabitsky outlines why this dual-site model presents a rare opportunity to generate revenue from day one while building for long-term growth in Vietnam’s rapidly evolving manufacturing landscape.

Can you share the vision behind Seldat Vietnam’s expansion and the strategic importance of the three sites in Binh Dinh Province?

The project was conceived prior to COVID-19 and the subsequent market disruptions. It was built on a strategy of gradually expanding production capacity. Initially, a smaller, owned factory was successfully established in a region located between Vietnam’s two key urban centres—Hanoi and Ho Chi Minh City. This location benefited from access to a cost-effective, skilled regional labour pool.

Following this, a second, larger rented facility was added as a temporary measure to scale up production. It was fully renovated and equipped for traditional garment manufacturing. At the same time, a major development was progressing through the approval stages: a large-scale factory on a 50-year leased land parcel, designed to employ 4,000 garment workers once fully operational.

The idea was to use the two smaller facilities to ramp up production while the main facility was under construction, and eventually consolidate operations into the larger site.

Now that markets are returning to relative normality—and with many garment manufacturers relocating from China to Southeast Asia—the project has regained momentum and is positioned for rapid development.

For any manufacturer looking to start garment production in Vietnam, Seldat offers an immediate opportunity: two existing, fully equipped facilities in Binh Dinh Province, ready for operations with a combined labour force of up to 570 workers.

What makes these sites particularly attractive for a manufacturing partner in terms of logistics and export potential?

All three manufacturing sites are located in close proximity to one another and to major regional transit hubs—making them highly attractive from a logistics and export standpoint. Phu Cat Airport is less than 6 km away, Quy Nhon Seaport is approximately 30 km away, and Quy Nhon Railway Station is just 15 km from the sites. Additionally, the area is connected by National Highway 1A, allowing access to Da Nang City within 300 km by road. Finished goods can be efficiently processed for export in Quy Nhon and shipped overseas via multiple transport options.

Could you elaborate on the dual opportunity model—how does the immediate revenue stream from Sites 2 & 3 complement the long-term value proposition of Site 1?

The immediate revenue stream from the ‘ready-to-go’ Sites 2 and 3 helps offset the capital investment required to complete the larger facility at Site 1. This dual approach also enables a gradual build-up of the local labour force while allowing for controlled scaling of production, logistics, and product distribution. It offers a balanced pathway to long-term operational stability and growth.

What level of operational readiness exists at each site, and what kind of support will Seldat offer to the incoming partner during setup or scaling?

Sites 2 and 3 are fully operational manufacturing facilities, with all equipment—including 570 industrial sewing machines and associated machinery—already in place. A Facility Director/Manager is available to immediately re-engage the local labour force, supported by an on-site accountant and a marketing/salesperson, all based in Binh Dinh. While Seldat Vietnam’s main office is located in Ho Chi Minh City, local operational support is firmly established.

Seldat Vietnam is well-positioned to:

(a) restart operations at Sites 2 and 3;

(b) assist in redesigning Site 1 to align with the new partner’s requirements; and

(c) complete and prepare Site 1 for full-scale production.

We will collaborate closely with the incoming partner’s team to seamlessly integrate necessary support staff and local expertise as the operation scales.

How does the infrastructure investment at Site 1 translate into an advantage for a prospective partner?

The new facility at Site 1 was designed as a state-of-the-art garments factory, yet its design remains flexible and can be swiftly adapted to suit the specific requirements of the incoming partner. Over $1.5 million has already been invested, with the most complex and high-risk phase now completed—all footings and foundations are in place. The project can transition from its current state to full operational readiness within 11 months of financing. This development period will not be idle; it provides an ideal window to refine staffing, operations, and logistics at the already functional Sites 2 and 3.

Given your international development experience, how do Vietnam’s policies, legal frameworks, and trade agreements compare to other manufacturing hubs in the region?

Vietnam compares favourably to most other countries in the developing world. From the local authorities’ willingness to collaborate with developers and investors, to the availability of motivated, skilled labour and professionals, the country offers significant advantages. Wages remain relatively low compared to other regions, and Vietnam benefits from reasonable currency regulations, multiple international trade agreements, transparent legal frameworks, and strong transportation infrastructure. These factors make Binh Dinh a uniquely attractive investment destination. Incoming investor-operators will also benefit from the full support of Seldat Vietnam staff, who are ready to assist with every aspect of company establishment.

What type of manufacturing partner are you ideally seeking—financial investor, production operator, or a hybrid? What will their role and responsibilities entail?

We are flexible and open to working with a financial investor, a production operator, or a hybrid of both. Seldat Vietnam is prepared to consider several project development options, including:

(a) an outright sale of the project company ‘as is’;

(b) sale of a majority share, with Seldat Vietnam completing the new facility and later either selling its remaining equity; or

(c) continuing as a production partner in some capacity.

Our goal is to collaborate with a partner who shares our vision for scaling operations and creating long-term value.

Can you speak about the labour availability in the region and how the workforce is being prepared to meet projected production targets, especially for the high-growth Site 1?

The region already boasts a substantial base of skilled local labour and professionals, with garments being one of its two primary industries. This existing talent pool provides a strong foundation for scaling operations. The presence of two smaller, operational facilities allows the investor or operator to engage and train the local workforce to their specific standards—well in advance of the completion of the high-growth Site 1. This phased approach ensures a smooth transition and readiness when the main facility becomes fully operational.

What are the available partnership structures—lease, joint venture, acquisition—and what are the projected financial returns across these models?

While a sublease is likely not a viable option, we are open to exploring all variations of joint ventures or outright acquisition and remain flexible on terms. For Site 1, the projected financial return for the investor is estimated at 39 per cent after the first year of operation, increasing to 45 per cent by the tenth year.

What risk mitigation strategies have been put in place, particularly considering supply chain disruptions and geopolitical developments in the region?

The United States and Vietnam have reached a preliminary agreement on tariffs, with Vietnam committing to address concerns over transshipment of goods from China. This follows a period of uncertainty and potential tariff increases from the US, making Vietnam one of the first countries to secure a trade deal under the current US administration. Given its skilled workforce and relatively low labour costs, Vietnam holds significant potential to take over a substantial portion of the supply chain currently dominated by China.

A key outcome of this agreement is the reduction of the reciprocal tariff from the initially proposed 46 per cent in April 2025 to 20 per cent. This is a major win for Vietnam, helping its goods remain competitive in the US market—which accounted for over 30 per cent of Vietnam’s export turnover in 2024 ($119.5 billion). Compared to ASEAN peers such as Thailand (36 per cent), Malaysia (25 per cent), and Cambodia (36 per cent), Vietnam enjoys a clear advantage in sectors like electronics, textiles, wood products, and seafood.

Nonetheless, risks remain. Industry and transit tariffs could raise production costs and shift orders to regional competitors such as India, Bangladesh, or Thailand. The textile and garment industry—responsible for 16 per cent of Vietnam’s exports to the US (around $19 billion in 2024)—faces intense competition. Although a 20 per cent tariff puts Vietnam ahead of Cambodia (36 per cent), the sector remains vulnerable due to its 60 per cent dependence on fabric imports from China. This reliance could increase costs and reduce Vietnam’s competitiveness, particularly against India, which has both cheap labour and a robust domestic fabric supply, with US exports expected to hit $7 billion in 2024. Bangladesh, despite not being part of ASEAN, also presents strong competition due to its low production costs.

To mitigate these risks, reducing dependency on Chinese raw materials is critical. Vietnam’s ability to localise its supply chain will be key to maintaining and growing its market share in the textile and garment sector.