Back
• Abundant human resources, low cost of human resources;
• Many large-scale garment companies, well organized and experienced in the field of manufacturing and import and export, have good relationships with importers and retailers in the world;
• Having a geographical location close to the major fabric and accessories producing countries in the world (China and India), favorable for the import of input materials for the garment industry;
• Vietnamese textile and garment products have been accepted by most demanding markets such as the USA, EU, and Japan. However, with 70% of input materials imported, has transferred Vietnam's garment industry into a passive position facing many risks, such as exchange rate risks. Industry productivity is low, lack of skilled labor. Most are small and medium-sized enterprises (SMEs) with little investment capital, make it more difficult to expand production and upgrade machinery. Also, ignoring the market demand, significant vacant sections, offer chances for many foreign products to enter profoundly into the domestic market.
The textile and garment industry is assessed to have a great contribution to Vietnam's economy when:
(1) The trend of shifting garment production from developed countries and territories such as Taiwan, Korea to developing Southeast Asian countries, including Vietnam, opens up opportunities to attract investment capital, acquiring new experience and import high-quality machinery to develop the textile industry;
(2) FTAs such as VKFTA, EVFTA, or CPTPP will eliminate restrictions to Vietnamese textile, garment products, and attract FDIs investment. Vietnam produces 02 main fabrics, woven fabrics from natural fibers and artificial ones. Production volume of these 02 fabrics increased in the period 2015-2019, namely, the average growth of the output of textiles from natural fibers and textiles from artificial fibers in the period 2015-2019 was 18.5% and 17.5% individually.
Vietnam's fabric export turnover increased gradually in the period 2015-2019, peaked in 2018 with an impressive increase of 32.96% compared to 2017. In 2019, the turnover reached USD 2.127 million, up 20.92% compared to 2018.
On April 11, 2014, the Ministry of Industry and Trade of Vietnam issued Decision No. 3128/QD-BCT on approving the development plan of Vietnam's textile and garment industry to 2020, with a vision to 2030.
Development goals
• Building the textile industry to become one of the key industries, heading towards export and be able to meet the increasing demand for domestic consumption;
• Ensuring the sustainable and effective development of the textile and garment industry based on modern technology, quality management system, labor management, environmental management following international standards;
• Distribution of textiles in suitable areas: favorable in terms of labor supply, transportation, seaports;
Development orientation
• Strengthening the garment export industry to take advantage of opportunities coming from the market;
• Develop a fabric production program for export and development of technical textile products and textile products for medical use;
• Develop sources of fibers, plants with fibers, artificial fibers, and accessories.
[1] Vietnam Investment Promotion Guidebook
INVESTMENT OPPORTUNITIES IN VIETNAM - PART III. TEXTILE AND GARMENT INDUSTRY
Investment Opportunities IN VIETNAM [1]
PART III. Textile and garment industry
Vietnam has many advantages in textile and garment manufacturing such as:PART III. Textile and garment industry
• Abundant human resources, low cost of human resources;
• Many large-scale garment companies, well organized and experienced in the field of manufacturing and import and export, have good relationships with importers and retailers in the world;
• Having a geographical location close to the major fabric and accessories producing countries in the world (China and India), favorable for the import of input materials for the garment industry;
• Vietnamese textile and garment products have been accepted by most demanding markets such as the USA, EU, and Japan. However, with 70% of input materials imported, has transferred Vietnam's garment industry into a passive position facing many risks, such as exchange rate risks. Industry productivity is low, lack of skilled labor. Most are small and medium-sized enterprises (SMEs) with little investment capital, make it more difficult to expand production and upgrade machinery. Also, ignoring the market demand, significant vacant sections, offer chances for many foreign products to enter profoundly into the domestic market.
The textile and garment industry is assessed to have a great contribution to Vietnam's economy when:
(1) The trend of shifting garment production from developed countries and territories such as Taiwan, Korea to developing Southeast Asian countries, including Vietnam, opens up opportunities to attract investment capital, acquiring new experience and import high-quality machinery to develop the textile industry;
(2) FTAs such as VKFTA, EVFTA, or CPTPP will eliminate restrictions to Vietnamese textile, garment products, and attract FDIs investment. Vietnam produces 02 main fabrics, woven fabrics from natural fibers and artificial ones. Production volume of these 02 fabrics increased in the period 2015-2019, namely, the average growth of the output of textiles from natural fibers and textiles from artificial fibers in the period 2015-2019 was 18.5% and 17.5% individually.
Vietnam's fabric export turnover increased gradually in the period 2015-2019, peaked in 2018 with an impressive increase of 32.96% compared to 2017. In 2019, the turnover reached USD 2.127 million, up 20.92% compared to 2018.
On April 11, 2014, the Ministry of Industry and Trade of Vietnam issued Decision No. 3128/QD-BCT on approving the development plan of Vietnam's textile and garment industry to 2020, with a vision to 2030.
Development goals
• Building the textile industry to become one of the key industries, heading towards export and be able to meet the increasing demand for domestic consumption;
• Ensuring the sustainable and effective development of the textile and garment industry based on modern technology, quality management system, labor management, environmental management following international standards;
• Distribution of textiles in suitable areas: favorable in terms of labor supply, transportation, seaports;
Development orientation
• Strengthening the garment export industry to take advantage of opportunities coming from the market;
• Develop a fabric production program for export and development of technical textile products and textile products for medical use;
• Develop sources of fibers, plants with fibers, artificial fibers, and accessories.
[1] Vietnam Investment Promotion Guidebook
Email
Facebook