Why the textile industry in Vietnam is continuing to grow?

Vietnam’s textile industry is expected to expand its markets in 2018 when the Free Trade Agreement (EVFTA) enters into force. EVFTA is a trade and investment agreement between Vietnam and the European Union.

According to Vietnam’s General Statistics Office, Europe is a promising market for Vietnamese textiles with a turnover of US$ 3.5 billion, just behind the USA with US$ 5.6 billion. The Vietnam Textile and Garment Association (VITAS) stated that, the exports of US$28.5 billion of 2016, made Vietnam is one of the five biggest exporters in the world.

Statistics from WTO Reports about textile industry shows that China, the European Union and India are the top three exporters of textiles in 2015. Together, they account for 66.4 percent of world exports. China, The European Union and the United States are the top three importers of textiles and together they account for 37 percent of the world imports. Increases in export values were recorded by Vietnam (+10 percent).

There are a lot of opportunities for Vietnamese textile and garment industry. Today the Vietnamese companies are very competitive. They have to ensure that their products come from Vietnam or use materials imported from the EU or bloc’s partners. If the companies continue to import from countries like china and India, it will be more difficult to benefit from the EVFTA.

Vietnam offers high-quality textile materials such as: silk, cotton, woven, bamboo and etc. People also use embroidery as a cultural expression. It is a popular activity for decorating pillowcases, curtains, tablecloths, bedclothes, clothes and etc. Many fashion designers and haute-couture specialists take inspiration from the ethic minorities and their typical handcrafted items and accessories. Patterns are authentic and they are part of their heritage and history.

Vietnam is a popular textile destination and a country that offers opportunities for foreign businesses. Today many textile and garment enterprises are investing in textile and aim for sustainable development.

Sources: Lexology, WTO, International labour Organization, Vietnam News