Garment and textile exports of Vietnam to the US and EU have grown robustly. This will make Vietnam an attractive destination for foreign garment and textile companies. Chinese garment and textile companies will be induced to shift investments to Vietnam in order to take advantage of the benefits that free trade agreements have brought to Vietnam. It is estimated that Vietnam will receive an investment wave of up to seven billion dollars from garment and textile companies in China, 2.1 billion dollars from South Korea, 1.6 billion dollars from Taiwan and 0.75 billion dollars from Japan.
Globally, the country has been showing a great impact on the garment and textile supply chain for being the world’s second largest textile and apparel exporter. The country’s garment and textile industry grew from 12 per cent in 2010 to 16 per cent in 2018. The garment and textile industry of Vietnam will advance further in the global market thanks to several existing advantages such as skilled laborers with sophisticated technique. Especially, with the recently-signed free trade agreements, import tariffs will be gradually removed for Vietnamese garment and textile products. There are 7000 enterprises in the industry, providing jobs for three million workers across the country.