Overview of

Vietnam’s
Textile and
Garment
Industry
Product
Categories Shirts
Pants
Jackets
Sweaters
Childrenswear
Swimwear towel
 History • 1997-2000 - Asian financial
• 1958 – 1970 – Textile
industry developed in crisis; exports dropped and
Northern and Southern slowed down
region; French built some
big factories in Nam Dinh, • 2001 – Bilateral Trade
HaiPhong, and Hanoi Agreement (BTA) with
United States
• 1991 - Company Law and
the Law on Private • 2003 - Vietnam-US Textile
Enterprise Agreement (VUTA)

• 1992 - First export • 2007 – Vietnam joined WTO

processing zone (EPZ)
• 2012 – New Labor Code
• 1992 - Established first
joint venture bank; signed • 2015-2016 – Concluded
co-operation and trade several Free Trade
agreements with Korea and Agreements (FTAs)
Japan
Industry Statistics
10-15% of the $ 201.3 billion GDP
(2016)
11.5% of the total export turnover of
Vietnam (2016)
Total Export Value: $ 24.61 billion
(2016)
Employs 2.5 million
people
Around 6000 textile and garment
manufacturing firms
Labor and Business Conditions

Labor Laws
• Working hours should not
exceed 10 working hours/day
and 48 hours/week
• Foreign investors can only
recruit foreign citizens to work
in Vietnam through approval of
state
• Trade union law assures an
employee’s right to freedom of
association
 Technolog
y
◦ The stages in the production
process are uneven so the
production is mainly based on
garment processing
◦ Machinery equipment are
imported
◦ Vietnam invested on developing
shuttle looms, ring spindles and
open-end rotors
◦ Marked expansion in the
knitting sector
Issues
Human Resources
◦ Weak management capacity and limited
ability to raise capital
◦ Weak in product design because of the
lack of good designers, lack of
information about customer demand

Procurement
◦ 70% of G&T materials in Vietnam are still
imported (dependent on foreign markets)
◦ Cut, Make, Trim (CMT) being the main
method of export
Issues
Competitiveness
◦ Pressure on labor costs increases
while labor productivity does not
increase
◦ Export products are not diversified
◦ The size of enterprises is mainly
small enterprises
◦ Lack of own clothing brands
◦ Countries with lower wage levels
such as Cambodia and Bengal
 Government
Support
◦ Vocational training policies in the
industry had not been effective
◦ Decree No 111/ND-CP on
supporting industries should be
promoted and be included in
research budgets, application of
new technologies and reduction of
corporate income tax
◦ Law on the promotion of small-
and-medium sized enterprises
◦ In the 2018-22 period, the export
tax of some products would be
reduced to zero
Foreign Investment
 MAJOR ASSOCIATIONS

◦ Ministry of Industry and

Trade
◦ Vietnam Textile and
Apparel Association (VITAS)
◦ Ho Chi Minh City
Textile/Garment/Embroider
y Association (AGTEK)
 Key Players
• Kyungbang Vietnam Co., Ltd
• PetroVietnam Petrochemical and Textile
Fibre Joint Stock Company
• Hoa Tho Textile and Garment JSC
• Tan Nam Trung Commercial
Manufacturing Service Co., Ltd
• Hantex
• TNG Investment and Trading JSC
• DOTIHUTEX Co., Ltd
• Hue Textile Garment Joint Stock Company
• Mirae JSC
• Dong Hung Group
Recent Events
◦ Abandonment of the Trans-Pacific
Partnership (TPP) trade deal in 2017
◦ A cotton manufacturing plant, known as
“Rang Dong Industrial Park” has been
established in Vietnam’s Ninh Thuan
province
◦ A Chinese investment worth $220 million for
a Vietnam polyester synthetic fiber plant in
central Tay Ninh province
◦ South Korea’s Sea-A Group has committed a
total of $2 billion in capital in Vietnam’s
textile and garment industry
 References
◦ Akter, A. (03 Februraru 2018). Vietnamese textile and apparel industry
moving towards US$50 billion by 2020. Retrieved from
https://www.textiletoday.com.bd/Vietnamese-textile-apparel-industry-
moving-towards-us50-billion-2020/
◦ BizVibe. (2019). Vietnam’s Top 10 Textile Manufacturers. Retrieved from
bizvibe.com/blog/textiles-and-garments/Vietnams-top-10-textile-
manufacturers/
◦ Koushan, D. (15 January 2019). Vietnam Hikes Minimum Wages by 5.3
Percent in 2019. Vietnam Briefing. Retrieved from Vietnam-
briefing.com/news/vietnam-hikes-minimum-wages-by-5-3-percent-in-
2019.html/
◦ Trần, A. N. (2017). Vietnamese textile and garment industry in the global
supply chain: State strategies and workers’ responses. Institutions and
Economies, 123-150.
◦ Le, Q. A., Tran, V. A., Duc, N., & Long, B. (2019). The Belt and Road
Initiative and Its Perceived Impacts on the Textile and Garment Industry
of Vietnam. Journal of Open Innovation: Technology, Market, and
Complexity, 5(3), 59.
◦ Threadsol. (2017). Apparel Trade Data Vietnam. Retrieved from
https://stitchdiary.com/Vietnam-garment-industry/