Vietnam's garment and textile export turnover is likely to increase 19 per cent over last year. This will be the largest increase in three years. The industry's efforts in the strategic direction of production, and increasing localisation, have helped increase competitiveness. To date, the sector has raised the localisation rate to more than 50 per cent.

The negotiation of free trade agreements has promoted the growth of the industry and is attracting orders from other countries. The next challenge for the sector will be the Trans-Pacific Partnership, which is expected to open up huge opportunities for Vietnam's garment and textile industry. However, companies will need to improve their productivity, quality, and competitiveness and invest in new technologies, machinery and innovation, in order to compete effectively.

Since the reunification of its northern and southern regions, Vietnam has become a strong player in the global textile market. The textile and apparel industry plays a major role in increasing the country's prosperity. The Vietnamese textile industry, with more than 3,800 companies, is leading the export sector. State-owned enterprises make up just 0.5 per cent of Vietnam's businesses and 75 per cent are joint stock or limited companies. The country ranks fifth worldwide in textile and apparel exports.