US retail giant JC Penney was on Wednesday reported to be looking at placing a series of orders worth $500 million with Vietnamese clothing and textile manufacturers over the next two years.

The Vietnam Investment Review quoted the department store group''s vice president, Rodney Birkins, as saying the firm expects to place apparel orders worth $200m in this year alone.

"We are sure that since JC Penney is one of the most trusted retailers in America, our activities in Vietnam will help lift Vietnam''s image in the eyes of American investors as well as others internationally," Birkins told the magazine.

"Our company''s policy is to concentrate our production in a few countries which manufacture textiles and garments effectively and Vietnam is one of our targets," he added.
 
The report added a group of JC Penney officials arrived in Vietnam last week to meet officials. The company placed clothing orders worth more than $80m in the first year of the Vietnam-US bilateral trade agreement but that figure is seen as growing to $500m by 2005.