Garment industry news

Development Trends of Vietnam’s Textile and Garment Industry in the Period of Economic Integration

Development Trends of Vietnam's Textile and Garment Industry in the Period of Economic Integration

Grasping world production trends very well, Vietnam’s textile and garment industry has been thriving in recent times. 

Besides efforts to maintain large export markets such as Europe, the US, and East Asian countries, Vietnam is seeking out other markets with long-term development potential, expanding its global reach.

In the garment industry, foreign-invested companies are dominating the Vietnamese market. With its outstanding financial capacity, Vietnam is attracting more and more foreign investment in the textile and garment industry. According to statistics, more than 25% of garment companies are funded in foreign currency.

Vietnam is also the top priority choice when it comes to low tax rates. Along with appropriate production costs and labor costs, post-export profits are expected to increase 3-4 times compared to other countries, making Vietnam a prime destination for textile and garment manufacturing.

Development Direction of Vietnam’s Textile and Garment Industry

Technological innovation

The prerequisite for the manufacturing industry is technology. Although it is still developing steadily, Vietnam’s textile and garment industry still needs to apply new technological equipment and software to match modern trends. This is a choice for investors to integrate, expand production, improve quality, and boost labor productivity.

Improve personnel quality

For a business specializing in garment production, improving workers’ skills is something that should happen every year. For experienced employees, continuous learning is essential to staying ahead of the curve and producing high-quality products quickly. Young workers require systematic and methodical training to integrate into the workforce and catch up with experienced workers.

Legal issue

Currently, Vietnam’s textile and garment industry is given priority for development, so the reform of legal procedures such as taxes, customs, and exports should be simplified to create a more favorable environment for investment. Furthermore, Vietnam needs to establish its own distinct brand identity in the global textile and garment industry.

Garment factory location

To reduce transportation costs as well as make full use of human resources, garment businesses should be located in areas near ports and airports, ready for export. Currently, industrial parks in Ho Chi Minh City, Binh Duong, and Dong Nai are the choice of many investors to develop the garment industry. With a prime location and abundant labor source, this will certainly still be the perfect choice in the near future. Vietnam’s textile and garment industry is undergoing a strong transformation

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