FDI projects in Vietnam's textile industry in the first eight months of 2020 declined 86.3 per cent to a value of $19.54 billion. According to Le Tien Truong, CEO, Vinatex, FDI inflow into the country’s textile sector is unlikely to pick up in the near future. However, experts expect a bright outlook for Vietnam once the pandemic is controlled.
Vu Duc Giang, Chairman, Vietnam Textile and Apparel Association one of the strongest candidates to takeover FDI investment in textile as traditionally large producers such as China, Japan, the Republic of Korea and Taiwan have seen reduced output in recent years. Trade deals including the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) continue to make Vietnam an attractive destination for investors.
In addition, the country's success in fighting off the novel coronavirus may encourage investment. Having more FDI projects also means faster and stronger localization of textile productions as the country must stay on course with product origin commitments.
