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Why is Vietnam gradually becoming an ideal supply source for the Asian textile and garment industry?

Why is Vietnam gradually becoming an ideal supply source for the Asian textile and garment industry

Recently, Vietnam has become one of the global centers for textile and garment production in Asia.

Equipment of Vietnam’s garment industry is being innovated and modernized by up to 90%. Products have increasingly better quality, conquering many demanding markets such as the US, EU, and Japan.

Besides, textile and garment enterprises have built close relationships with many large importers in the world. Vietnamese businesses themselves are also considered by their customers to have advantages in terms of labor costs, skills and good sewing skills.

In particular, Vietnam is highly appreciated for its political stability and social safety, which is attractive to foreign traders and investors. Vietnam’s active participation in regional and world economic integration also expands market access for exports in general and textile and garment exports in particular.

Wave of shifting production from China to Vietnam

In recent years, there has been a big change, many manufacturing factories from China have begun to move to Vietnam. One of the main reasons for this change is the increasing labor costs in China, making manufacturing operations in China more expensive than before. Therefore, investors look for other alternatives with lower costs.

The trade war between the US and China is another factor driving this change. As tensions between these two countries escalate, with many businesses concerned about tariffs and trade restrictions, neighboring Vietnam is an ideal choice to reduce dependence on China.

The Vietnamese government is increasingly investing in vocational and training programs to improve the skills of the local workforce. Vietnam has been signing a number of free trade agreements with many countries to create an attractive location for production and business.

Strengths of Vietnam’s textile and garment industry

Vietnam’s strategic location on the world map is the biggest competitive advantage of logistics and supply chain management. Located in Southeast Asia, Vietnam has easy access to major markets such as China, Japan, Korea, EU and US. The favorable geographical location from Vietnam to these countries makes the transportation of goods only take about 3-5 working days, increasing the proactive ability of export garment enterprises. At the same time, geographical proximity also makes market information faster and more abundant.

The garment industry is a long-standing traditional industry in Vietnam. This is a priority industry for development in the industrial sector, with conditions for developing supporting technologies such as cotton growing, mulberry growing, silkworm raising, spinning, weaving, etc. … With a population of nearly 100 million people, Vietnam has a large young workforce with relatively high qualifications, able to handle manual jobs with low to medium qualifications.

Vietnam is trying to attract more foreign investment by providing many incentives and benefits such as low taxes, low labor costs, favorable trade agreements, etc., making the country an ideal destination. ideal for businesses to reduce operating costs. Other production costs are also lower due to the incentives of the Vietnamese Government in imposing 0% tax on temporarily imported and re-exported goods. Exporting garment enterprises are exempt from import tax on raw materials if these materials are re-exported as finished products within 90 to 120 days.

Vietnam has achieved certain achievements in the international garment market. In 2022, the industry continues to grow in double digits and maintain the 3rd position in exports in the world market. The number of customers coming to tailor and place direct export orders is increasing more and more than before. Although the brand belongs to the customer, the words “Made in Vietnam” on the products have become familiar and gradually become trusted by international customers.

In addition, most global shipping and logistics brands have deployed operations in Southeast Asia to strengthen the textile and garment supply chain in Vietnam.

How to find the best textile and apparel supplier in Vietnam?

Search engines like Google can help recommend most of the suppliers in the market. However, not many suppliers can communicate well in English, and their online presence (e.g. website, social media) is not very responsive.

Trade shows are also places where highly reputable and reputable companies gather to showcase their capabilities, so you can easily approach them at the event. Several textile and footwear associations in Vietnam can help connect you with local suppliers. However, the response rate is quite random and there is no supplier classification, causing you to spend a lot of time evaluating the list of suppliers you receive.

If you are looking for a reputable supplier of textile products. Please contact us – Vietshine Group Joint Stock Company today to receive dedicated advice from Vishimex’s professional staff and provide information that best suits your wishes.

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