The textile industry and apparel (T&A) industry in Vietnam needs to capitalise on its global position to maintain momentum and compete effectively in the international market, opine industry experts.
Despite witnessing growth in exports, Vietnam’s T&A industry continues to face significant challenges due to rising market demands and evolving customer expectations.
The industry witnessed a 6.2 per cent Y-o-Y rise in exports in the first eight months of FY24 bringing the total export revenue to $28.3 million during the period.
In Aug ’24 alone, Vietnam’s textile and apparel exports revenue reached $4.3 billion, as per Vu Duc Giang, Chairman, VITAS. Giang attributes this growth to the shift in global orders toward Vietnam, driven by factors such as the US-China trade war, conflicts in Europe, and instability in Bangladesh, a key apparel exporter. He notes, the current growth presents an opportunity for Vietnam's textile industry to set new export records.
Emphasising on the industry long-term strategy to diversify its product range, Giang also acknowledges the challenges faced including the rising volume of orders and the need for businesses to adapt to new purchasing strategies from global partners. He emphasises on the importance to enhance connectivity across the supply chain, from raw materials and machinery to marketing. Giang also highlights the need to adopt advanced technologies and artificial intelligence to boost productivity, improve quality, and create distinctive products.
Nguyen Van Hoang, General Director, Dong Tien JSC, points out, the shift is also happening domestically, with more partners prioritising factories that comply with environmental, social, and governance (ESG) standards. He notes, the industry is increasingly emphasising on sustainability and ethical production.
Jimmy Qiu, Vice President of Jack Technology, emphasises on Vietnam's growing significance in the global textile-garment supply chain, attributing the country’s success to its rapid adoption of smart technologies and green production practices.
Pham Van Viet, Chairman, Viet Thang Jean Co (VitaJean) and Vice President, Ho Chi Minh City Association of Garments, Textiles, Embroidery, and Knitting (Agtek), remarks, Vietnam's competitive edge no longer lies in low-cost labor. Instead, the focus has shifted toward optimising science, technology, and digital transformation. He underscores the need to establish clear policies and strategies to ensure a smooth transition to new market dynamics.
Viet also emphasises on the importance of building a domestic textile-garment supply chain through high-tech systems at every stage—from raw material production and weaving to design, sewing, and branding. However, his transformation requires substantial capital and human resources, particularly in terms of technology innovation and workforce training, he acknowledges. He urges small and medium-sized enterprises (SMEs) to support in this green transition through technology upgrades, and design capabilities.
Additionally, Viet highlights on the need to strengthen communication efforts to enhance the branding of both individual companies and the national textile industry, ensuring a strong global presence.
