Several free trade agreements will turn Vietnam into a primary destination of global supply chain and open up huge opportunities for the domestic garment industry. In order to effectively grasp these opportunities, the garment sector should make greater efforts in calling for foreign and domestic investments. Closer links between garment producers and raw material suppliers are also necessary.

Many US companies are willing to seek supply sources from nations joining the TPP agreement once it takes effect and Vietnam is ranked highest in terms of the ability to draw new businesses. Nine years after joining the World Trade Organisation, Vietnam’s garment-textile sector has increased its market share in the United States to 10 per cent from the previous three per cent, second only to China.

Last year, the sector saw an impressive growth of 17 per cent in Europe, 12.5 per cent in the United States, 9 per cent in Japan, and 27 per cent in South Korea. Over the past six months, garment exports earnings of Vietnam were up 10.26 per cent year-on-year. The United States continued to be the largest importer of Vietnam’s textile and garment products, accounting for 42 per cent of the total export value, a surge of 11.01 per cent.