Rising of Textile and Apparel Industries in Vietnam

Last updated on March 19th, 2024 at 10:01 pm

Now a day Vietnam is an emerging titan in the world Textile and Apparel industry. Vietnam is now possessing 3rd position as a Textile and Apparel manufacturer country after Bangladesh in the world. But it was not an easy way to hold this position. Vietnam joined World Trade Organization (WTO) in the year of 2007. It also got Free Trade Agreement in 2015-16, which includes the European Union-Vietnam free trade agreement, Korean free trade agreement and Euro-Asian free trade agreement which boosted its Textile and Garment Industries.

Rising of Textile and Apparel Industries in Vietnam


Vietnam Textile & Apparel has a glorious history. As Vietnam economy was agriculturally based on the earlier days, they knew how to make delicate silk yarns from the cocoons. They also knew about the primitive weaving process to make the yarns into fabrics and then into garments. However, its Textile industry started developing in 1958 in the Northern region and in 1970 in Southern region. Some giant factories started building during this period.

It got exclusion of many non-tariff barriers under the 2001 United States and Vietnam Bilateral Trade Agreement. After joining the WTO in 2007, it concluded many free trade agreements which flourish its Textile industries.

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It started investing in its spinning, weaving and knitting industries during the 2001-2015 periods massively. Though this sector got global attention lately, now it has managed to attract all the giant buyers worldwide. In the year 2017, this sector earned over US $31 billion in export revenue, up 10% from 2016. Up to the 3rd quadrant, Vietnam earned US $25 billion from this sector. Export revenue in the year 2018 is forecast at US $35 billion.

Textile & Apparel industry Expo

Now Vietnam garment products are exported to more than 180 countries & territories. It shows the dominating role in the global textile & apparel value chain. This industry is now moving from processing to producing and introducing advanced types of machinery. In this perspective, Vietnam Textile & Garment industry Expo is the biggest event sharing their innovative solutions and global partnerships.

Every year this event is held in Saigon Exhibition & Convention Center (SECC). This year it will be held on 21-24 November. It shows how to overcome challenges & make solutions associated with Vietnam Fibre, Textile, Garment, Accessories and Trims.

It is the only Textile & Garment Expo approved by the International exhibitor assurance of quality and held currently with the Vietnam Fabric & Garment Accessories Expo. These two expos aim to give a one-stop solution to the buyers in Vietnam and the neighboring countries.

Barriers & Improvements

European Union is the largest textile importer globally. Vietnam is holding the second position to export textile & apparel goods to the EU, which is not a large portion, and it is showing the weakness of competitiveness of Vietnamese garment products. The negotiation and signing of the EU-Vietnam Free Trade Agreement (EVFTA) create a favourable condition for their business to improve their competitiveness in the market.

Its most important barrier is its raw materials as its production depends on raw materials import. More or less 70% of its raw materials are imported. The country can only produce 2% of its total cotton & 15% fabrics, and the quality is also very inferior. Other barriers are their development and technologies. The industries are not capable of producing new designs to attract buyers. They are exporting 2% – 3% of their developed products. Moreover, they are also not competent enough to introduce advanced technologies to produce new products at a lower cost.

However, to meet the origin requirements of EVFTA, export to European Union must meet the fabrics produced in the EU or Vietnam. Moreover, the utilization of bilateral rules of origin is also very few because the price of EU fabric is expensive with the high transportation cost.

According to experts, the benefits from EVFTA are very high, but the companies should meet the requirements of “rules of origin” to benefit. Currently, 35% of products take full advantage of EVFTA, and 65% are still subjected to high tariffs. To provide all types of support to the manufacturers, the Vietnam Textile & Garment association is working on it and giving information. Though the regulations of EVFTA are very strict, the manufacturers must be prepared to take advantage.


As these industries are the main contributors to Vietnam’s economic development, they are showing satisfactory growth. It’s giving importance to its infrastructure development, developing new products to attract new buyers and signing different trade contracts. It’s also investing in its knitting, weaving, and dyeing industries to globally become a leader in the Textile and Apparel sector.

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He is Abu Sayed, the founder of the blog site Textile Apex. He is a Textile Engineer having eight years plus practical experience in the Textile and Clothing industries. With a deep love for fashion and a keen eye for detail, he combines his creative flair with extensive knowledge to offer insightful and engaging content to his readers.
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