Japan will assist apparel maker Matsuoka Corp. in producing protective clothing in Vietnam to diversify supply chains and lessen its dependence on China amid the coronavirus crisis.

Matsuoka plans to invest JPY3 billion (US$28 million) in An Nam Matsuoka Garment Co., its Vietnamese manufacturing unit, to start production of protective wear and other items in several months, local media has reported.

Matsuoka is one of 30 Japanese firms which were recently named recipients of official subsidies from the Ministry of Economy, Trade and Industry to promote Japan's drive to diversify supply chains and reduce its dependence on China.

The Japan External Trade Organization, which announced the list of subsidy recipients last week, said 15 of the 30 firms are connected with projects in Vietnam and six in Thailand.

Matsuoka, of Fukuyama, Hiroshima Prefecture, established its Vietnamese unit last November before the coronavirus outbreak as part of an ongoing campaign to produce apparel products mainly in Southeast Asian countries such as Indonesia, Myanmar and Bangladesh.