Vietnam is benefiting from the shift of production away from China. Disbursement of foreign direct investment in Vietnam in the first nine months of 2022 was up 16 per cent, marking a record high.

Technology, textiles and garments are shifting away from China to Vietnam. Vietnam has received increasing attention from global producers as many of them are searching for alternative supply chains in the face of China’s zero Covid policy. Two giant brands in the global footwear industry, Nike and Adidas, have chosen Vietnam as their main production base. Nike has more than 100 suppliers in Vietnam, with 96 factories concentrated in the southern region.

Vietnam is third top apparel exporter .Last year, Vietnam surpassed Bangladesh for a quarter to take the world’s second position in terms of textile and garment export market share position, behind China. Despite the difficulties of the post-Covid economy, as of mid-July 2022, garment-textile was one of the four sectors posting the highest export revenue for Vietnam, up nearly 20 per cent year-on-year.

Vietnam has approximately 6000 garment and textile manufacturing companies employing 2.5 million people, and its top export destinations are leading consumer markets – the US, Europe, Japan, and South Korea. As a major player in the global supply chain, Vietnam’s textile and garment industry is taking steps to become a more sustainable destination.