Export revenues of Vietnam’s textile and garment industry are forecast to go up 11 per cent over the previous year. Such a number if realized will account for 16 per cent of the country’s total outbound sales.

Vietnam, one of the five largest textile and garment exporters in the world, got 28.3 billion dollars in outbound sales last year. The added value was still not high as local content in its apparel products was just over 50 per cent.

The domestic sector is strong in export outsourcing but weak in weaving and dyeing. Only a small number of Vietnamese enterprises are well-qualified to enter global supply chains. Supporting industries for the local textile and garment sector have remained underdeveloped. It is now facing a lack of skilled workers while its input costs are high and loan interest rates are higher than in other regional countries.

Vietnamese textile and garment products are up against fierce competition with those from other countries, especially China, because in addition to quality, price and delivery time, domestic exporters have to meet strict environmental protection requirements.

Therefore, local manufacturers have had to replace old equipment to meet four key criteria – productivity, quality, energy saving and environmental protection.