As per Vietnam Textile and Apparel Association (VITAS), Vietnam’s garment-textile export revenue is projected to reach $200 billion by 2035. The sector, in the first six months of this year, attracted upto $2.8 billion in FDI. These include large-scale projects like $80 million Nam Dinh Ramatex Textile and Garment Factory of Singapore’s Herberton Ltd and Ha Nam YKK Factory specialising in producing zippers and other materials for the garment industry with an annual capacity of 420 million products. By the end of 2017, Vietnam had attracted 2,079 projects in the garment-textile sector with total capital of $15.75 billion.
As per VITAS, garment-textile production lines and orders have moved to Vietnam as China has lost its advantages in terms of labour costs. Besides, Vietnam’s joining many FTAs has created opportunities for local businesses to diversify its export markets besides attracting material suppliers. Even though agreements such as Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam FTA (EVFTA) are yet to come into effect, they have significantly attracted foreign investors in Vietnam’s garment-textile sector.