Vietnam's apparel exports have seen a methodical growth over the last five years. Exports for 2020 is forecast to be $39.89 billion. A Fibre2Fashion overview.

Global apparel exports have been growing steadily since 2017. The market size for 2018 was $488.81 billion with a growth rate of 7.55 per cent over the previous year. It is expected to grow at the compounded annual growth rate (CAGR) of 7.55 per cent to $565.41 billion in 2020. China, Europe, Bangladesh, Vietnam, India, Hong Kong, Turkey, Indonesia, Cambodia and the US are the top ten apparel exporters in the world. But the country that stands out in this trade surge is Vietnam-heavily dependent, though, it is on raw material imports from other countries.

The landscape of Vietnam is dotted. More than 200 foreign fashion brands are present in the country accounting for more than 60 per cent of the market, according to the Vietnam Association of Retailers. With the rise in global exports, a continual growth is also being seen in Vietnamese apparel exports. With technological development such as modern equipment for advanced wastewater treatment, abundance of skilled and relatively cheap labour, competitive wages, commercially viable trade agreements with developed countries, and incentives offered by state policies help Vietnam's apparel industry to thrive and ensure both domestic and export demand.  

Source: TexPro & WTO

At present, Vietnam caters to 6-7 per cent of the global apparel demand. More than 5,000 apparel manufacturing factories are running in the country consisting of small enterprises, big corporates, units with 100 per cent foreign direct investment (FDI) (20 per cent of total units) and state-owned enterprises. Many state-owned enterprises have since been privatised. However, significant stakes are still owned by the government of Vietnam and about 12 per cent of the country's apparel business is generated by these enterprises. These enterprises operate under the name Vinatex.