Vietnam developed its textile industry in 1958 in Northern region and 1970 in Southern region. Now it’s textile has come a long way and dominating global textile market today.
Vietnam came along as the third top garment exporter in the world in 2016 followed by China and Bangladesh. It accounted for 16 percent of its total apparel exports in 2016. Today Vietnam is the home of more than 6000 textile and apparel manufacturing companies, providing jobs for 2.6 million people out of its 90 million total populations.
A majority percent of Vietnam’s apparel and textile products are exported to 180 countries and territories in the world. As of now garments manufacturing accounts for 70% of the total business in this sector in Vietnam and CMT (Cut, Make, Trim) is the main method of export which is almost 85%. Among other leading importers including EU, Japan and South Korea, USA is the largest market for Vietnamese apparel and textile products. Due to US support Vietnam has massive development in the garments and textile industry.
Despite the abolition of Trans-Pacific Partnership (TPP) trade deal in 2017, Vietnam was able to exceed its 2017 turnover ($30bn) in 2018 with a 31.0 billion in total export turnover which indicates 10.1 percent export growth. Le Tien Truong, the deputy chairman of Vietnam Textile and Apparel Association expresses that its largest markets including US, EU, Japan and Korea helped them maintain good growth while China, Russia and Cambodia is their new market considered to be a breakthrough in Apparel and textile exports. On the other hand, export to south Korean market grew significantly and reached $2.7 billion in 2017 while export to Chinese market reached $3.2 billion similar to the export value of Japanese market.