Vietnam reliable alternative for buyers seeking stable supply chains

01 Jun '25

1 min read

Vietnam reliable alternative for buyers seeking stable supply chains

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Insights

A drop in China's market share in Japan and South Korea, and production in Bangladesh and Pakistan getting hit due to energy shortages and political instability has positioned Vietnam as a reliable alternative for buyers seeking stable supply chains.
However, challenges persist.
A recent rise in domestic electricity prices has raised production costs, particularly affecting yarn manufacturers.

A decline in China’s market share in Japan and South Korea, probably due to increased scrutiny of tax evasion practices by Chinese firms, and production in Bangladesh and Pakistan getting hit due to energy shortages and political instability has positioned Vietnam as a reliable alternative for international buyers seeking stable supply chains.

However, challenges persist. A recent increase in domestic electricity prices, effective from May 10, has raised production costs, particularly affecting yarn manufacturers with narrow profit margins.

Companies must navigate these cost pressures while capitalising on emerging global opportunities.

Domestic garment production in Vietnam also remains robust, as evidenced by the industrial production index (IIP) and labour indices consistently showing upward trends without any contraction since the the year began, a news agency reported.

According to the customs department, the country's textile and garment exports reached $8.69 billion in the first quarter this year, with the US accounting for 43.6 per cent of this figure. April saw a 15-per cent year-on-year increase, totalling $3.64 billion.

Fibre2Fashion News Desk (DS)

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