Vietnam textile and apparel market size is about USD 4-5 billion, expenditure per capita on textile and apparel is low. Domestic textile and apparel enterprises are weak in the knowledge-intensive stages such as building distribution system, exporting, designing and branding. Viet Tien, Nha Be, May 10, are some few successful enterprises in brand building and marketing. Vietnam textile and apparel export turnover is expected to reach USD 50-55 billion in 2025 thanks to FTA.
The world textile and apparel industry is deeply influenced by macroeconomic fluctuations. China is the world’s largest textile factory with a complete supply chain and the advantages of machinery and cheap labor. Developed countries such as the United States, Italy, South Korea and Hong Kong occupy higher value-added products such as design, marketing and branding, commercialization and export. China, The United States, Germany and Japan are the largest textile and apparel consuming countries in the world. It is predicted that in the next five years, emerging markets with large population size such as China, India, etc. will grow strongly; Meanwhile, textile and apparel market in developed countries, especially in European countries, tend to be saturated and grow slower.
Textile and apparel industry is one of the key sectors of Vietnam and has the second largest export turnover with export value contributing 10-15% to GDP. In recent years, the textile and apparel industry has continuously grown with the annual average rate of 17%. Vietnam is one of the top 10 textile and apparel exporting countries in the world. FDI enterprises only account for 25% of total volume, but contribute more than 60.64% in textile and apparel export turnover in 2017 in Vietnam.
It can be said that the textile and apparel industry with the majority of small and medium companies, low financial capacity and weak competitiveness will face difficulty when opening up the economy. However, in the long run, Free Trade Agreements will motivate businesses to move forward and move higher up in the value chain, deeper and broader integration into the world economy.
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Ankur Gupta, Head Marketing & Communications