With the value of its textiles and garments exports surging 20.3 per cent Y-o-Y in Q1FY2022, Vietnam continues to be a leading textile and garment exporter to the US and EU markets. As per the figures from the General Department of Customs, the US is a leading importer from Vietnam totaling $4.3 billion in 2022; followed by the EU with imports worth $896 million and Korea with imports worth $754 million. Recent growth witnessed in Vietnam’s exports and initial control of the COVID-19, will help the textile and garment industry achieve its export target of over $43 billion by 2022.

Increased investments in new technologies

Vietnam is also likely to benefit from brands’ China Plus One strategy and emerge one of the most favorable destinations for manufacturers, import and export distributors, wholesalers and retailers worldwide. Textile manufacturers in the country have upgraded their production technologies besides increasing labor productivity. A prominent manufacturer, Hung Yen Garment Corporation (Hugaco) is boosting investments in equipment, modern technology and digital transformation.

Industrial real estate developers fuel growth

Industrial real estate developers are also contributing to the growth of textile industry in Vietnam. One of the few IPs in Vietnam to meet legal and utility infrastructure requirements, Aurora is building an infrastructure synchronously designed with the country’s largest capacity of water supply and wastewater treatment system.

In 2020, Aurora signed two deals worth $200 million to develop high-tech textile and dyeing projects. Besides developing domestic enterprises, the company focuses on attracting foreign investments to ensure sustainable development of the industry, says Tran Quoc Viet, Chairman & CEO, Cat Tuong Group.