Up to 70 per cent of Vietnam’s textile export revenue belongs to foreign direct investment (FDI) enterprises, according to the Vietnam Textile and Apparel Association (VITAS), which recently said the export turnover of the sector was $39 billion last year and is expected to reach around $32 billion this year despite being heavily affected by the COVID-19 pandemic.

In the long run, when the domestic garment and textile enterprises can produce raw materials, they can raise their export market share, especially in the European market, where they only account for 2 per cent of the market share, according to Vietnamese media report.

Currently, the country’s textile and garment industry ranks sixth in textile exports in the world and ranks second after China among the largest textile exporters to the European market.

Many domestic garment and textile enterprises said that authorities need to attract foreign investment selectively in the garment and textile sector. Accordingly, it is necessary to prioritize investment attraction in the production of raw materials to create conditions for domestic enterprises to complete the garment and textile supply chain and make the most of the advantages of export tariffs.

At the same time, it will help domestic garment and textile enterprises to reduce the risk of antagonistic competition with FDI enterprises investing in Vietnam in the export market.

Fibre2Fashion News Desk (DS)

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