In recent years, Vietnam has emerged as one of the world’s leading clothing manufacturing hubs. International businesses are increasingly choosing Vietnam as their main production location, not only because of product quality but also because of many other factors.
High product quality
One of the most important reasons why international businesses choose Vietnamese clothing manufacturers is product quality. Many factories in Vietnam have invested in modern technology and advanced production processes, helping to create products that meet international standards. According to data from the Ministry of Industry and Trade, the rate of exported goods meeting quality standards is up to 98% in 2023.
Reasonable production costs
Vietnam has a great competitive advantage in terms of production costs. Although Vietnamese workers’ wages are increasing, labor costs are still much lower than in countries like China or India. According to a PwC report, production costs in Vietnam are about 30% lower than in China. This helps international businesses save on production costs and increase profits.
Growing domestic market
Vietnam is not only a manufacturing market but also a large consumer market. Rising incomes and consumer demand have created a potential domestic market. According to a McKinsey report, the fashion market in Vietnam is expected to reach 23 billion USD by 2025. This attracts many international brands wanting to penetrate this market.
Developing infrastructure and logistics
Vietnam is improving its infrastructure, especially in the field of transportation. Investment in seaports, airports and roads helps reduce transportation times and save on logistics costs. According to the World Bank, Vietnam ranked 64th in the global logistics performance index, up 10 places from last year. This makes it easier for international businesses to access raw materials and consumer markets.
Supportive trade policy
Vietnam has signed many free trade agreements (FTAs) with major countries and regions, such as the EU, CPTPP and RCEP. These agreements not only expand export markets but also reduce import tariffs for Vietnamese goods. According to data from the Ministry of Industry and Trade, textile and garment exports to the EU increased by 25% in 2022 thanks to incentives from the EVFTA agreement.
High-quality human resources
Vietnam has a young, dynamic and highly skilled workforce in the manufacturing sector. Many workers in the garment industry are well-trained and have experience working in modern factories. According to statistics from the General Statistics Office, about 80% of garment workers have a college degree or higher. This helps ensure that products meet the highest quality standards.
Sustainability and innovation
Nowadays, sustainability is becoming an important factor in the manufacturing industry. Many Vietnamese clothing manufacturers have begun to adopt sustainable production methods, minimizing their impact on the environment. According to a report by Fashion Revolution, more than 60% of manufacturers in Vietnam have committed to using environmentally friendly materials and minimizing waste during the production process.
Ability to respond to market demand
Vietnam has the ability to quickly respond to market demand. Manufacturers can flexibly change production processes to suit new trends in the fashion industry. This helps international businesses quickly launch new products to compete in the market.
With reasons such as high product quality, reasonable production costs, developed infrastructure, and supportive trade policies, it is no surprise that Vietnamese clothing manufacturers have become the top choice of international businesses. In the context of globalization, Vietnam will continue to affirm its position in the clothing manufacturing industry, attracting more international brands to invest and cooperate.
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Vishimex – A trusted partner in the garment manufacturing industry
Vishimex has affirmed its position as one of the most trusted garment manufacturers in Vietnam. With over 10 years of experience in the textile and garment industry, Vishimex not only provides high-quality products but also has a large network of partner factories. Vishimex is especially outstanding in its ability to quickly respond to large orders while still ensuring product quality.
Vishimex not only provides fashion products for the domestic market, but also exports to countries around the world. The company’s reputation and quality help international businesses trust and choose Vishimex as a long-term partner.