Published On : November 2015
Recently, textile businesses worldwide have been moving some of their China-based operations to Vietnam, where labor costs are lower in comparison to China, The relocation of production facilities to Vietnam - along with government support to the industry, increasing textile exports, strong economic reforms, improved trade relations and focused goals - have helped Vietnam's textile and apparel industry to expand.
The country’s concentration is on specialization and modernization, creating a leap in terms of added value of products, with the implementation of three programs: cotton planting; high-quality woven fabrics; and human resources training. To accomplish these goals, the sector plans to develop 40,000 hectares of concentrated cotton-growing areas in the central coastal and highlands provinces; and establish primary supply centers in Hanoi, Ho Chi Minh City, Da Nang and Can Tho. The focus will also be on moving plants from major cities to provinces neighboring the supply centers and establish apparel factories; and train workers in production management, fabric design, skills analysis and sales techniques.
Highlighting Vietnam’s emergence as a competitive textile and garment producing nation, this report studies the overall Vietnam Textile and Clothing sector. The report elaborates how Vietnam has come into the forefront of major garment sourcing in last few years, what is the market scenario in terms of production, export and import. It also discusses in detail the labor cost, production cost, FDI inflows etc.Key companies and associations have also been listed for ready reference and the business performance and financial situation of operating companies have been examined. Some key insights in to the Vietnam market include: Key investments sector and location wise, Industry trends, Factors influencing the market, Porter’s five forces model analysis, Government incentives, rules and regulations and trade agreements. Vietnam’s Spinning sector shared more than 60% of the investments announced from Mar-2014 onwards, Finishing and Garments sector shared more than 30% together. Ho Chi Minh City and Binh Duong are biggest investment locations for T&C capturing majority of the investments.
*Selected investments announced from Mar-2014 to July 2015, amounting to US$ 4,825.7 Million
The report concludes with a SWOT analysis of the industry along with the future market growth estimates and development strategies.