Vietnam Garment Manufacturing Industry Overview, 2011-2020

Source: http://www.shcri.com/clothing/33297-vietnam-garment-manufacturing-industry-overview-2011-2020.html

According to CRI’s investigation, the major considerations that garment manufacturing enterprises should take when choosing locations include workers, raw materials, tariffs, supply chains, religions and political unrests. Vietnam has mature workers in efficiency and skills besides China, and it is one of the biggest beneficiaries of TPP. Textiles manufactured in Vietnam will be exported to the U.S.A. and other important markets in the world such as Japan being exempted from Customs tariffs after TPP officially goes into effect among all members. This will increase the demand for processing products and create numerous jobs in Vietnam.

Industries benefited most are garments, foot-wears and textiles, which accounted for about 25% in Vietnam’s total export value in 2015. Furthermore, Vietnam and other TPP members shall abide by the rules of origins in garment products. Namely, the raw materials such as cotton yarns shall be originated from domestic market or other member countries, which will benefit the upstream material suppliers of Vietnam garment products. Textile manufacturers will further expand their production in Vietnam and transfer their textile industry as the countermeasures of rising costs of workers and energy in their Chinese bases.

To summarize, Vietnam has a priority if manufacturers in China choose to transfer their bases.

According to CRI, Vietnam has about 6,000 textile and garment manufacturing enterprises with over two million employees and providing job opportunities for over one million workers in relevant industries.

Under the context of global gloomy economy in 2015, the export value of textiles and garments in Vietnam increased by 9.43% YOY being USD 27.2 billion, of which export towards the U.S.A. increased by 11.5% being USD 10.9 billion. The U.S.A. is the biggest export market of Vietnam textiles and garments with a proportion of 40.3% in the total export value. The second goes to Europe with that of 12.5%, Japan with that of 10.2% and South Korea with that of 7.8%.

Source: http://www.shcri.com/clothing/33297-vietnam-garment-manufacturing-industry-overview-2011-2020.html