Exports of Vietnamese apparel are expected to touch $24.5 billion thereby surpass the set target by nearly a billion. The garment and textile sector continues to top Vietnamese exports, mainly due to the right strategies. These include: hiking the percentage of locally made raw materials to 50 per cent.

Vietnam exports garments worth $8.85 billion to the US, $2.38 billion to Japan and $1.96 billion to South Korea, all of which put together account for 70 per cent of exports from the sector. Signed and pending free trade agreements are opening up a lot of chances for the sector to grow further, as import tariffs may drop to zero in many markets.

The tax incentives to be ushered in with the signing of Trans-Pacific Partnership Agreement in 2015, will also create favorable conditions for clothing exports to the US market. If TPP deal is inked, it would help Vietnam capture 10 per cent market share from China, as Vietnamese textiles and apparels would then enjoy greater benefits than China, which do not form part of the TPP agreement. Globally Vietnam ranks fifth in textile and apparel exports.