A Vietnamese furniture maker announced this week a plan to invest US$5 million in a manufacturing facility in the US state of Arkansas.

Vinh Long Import Export Manufacturing Joint Stock Company, based in southern Vietnam’s Vinh Long Province, said Friday (Vietnam time) during a ceremony in Arkansas it will spend the money on opening a plant in the state’s Morrilton City to manufacture storage furniture and kitchen cabinets for retailers in North America, state radio Voice of Vietnam reported Saturday on its website.

The company will hire 75 people within three years and plans to hike its workforce by up to 20 percent annually for the following three years, according to an article on the website bnd.com.

Arkansas Governor Mike Beebe said at the ceremony that he appreciated the Vietnamese firm’s decision to bring its operations to the state, whose workforce and incentives make it an ideal choice for international investors.

Vietnamese Ambassador to the US Nguyen Quoc Cuong hailed the investment as an indication of “the growing business relations between Vietnam and the United States.”

The state offers the company a range of incentives, including an income tax credit of two percent of total payroll for five years, sales tax refunds on materials and equipment, and training assistance, the article at bnd.com said.

It is going to provide the Vietnamese investor with $300,000 to help with the building of the plant at an old factory site.

The company is set to start employing staff in the spring, with production slated for next summer.

Vinh Long specializes in making furnishing products from natural fiber mixed with industrial materials.

It raked in $20 million in revenue and created over 10,000 jobs last year.