Vietnam’s garment-textile sector has made significant progress, especially in yarn and dyeing. More than 2.5 million tons of yarn were produced in 2019, of which over 1.5 million tons were exported. Fabric output also increased six times.
Technological applications are reflected in improved productivity, accelerated production and reduced labor force and offer workers stable jobs with higher incomes while helping companies double profits. The textile and garment industry is stepping up its sustainable development strategy implementation to meet the requirements of major foreign markets. Manufacturers in the sector have applied advanced science and technology to green the industry, apart from training human resources. Vietnam’s earnings from textile and garment exports have risen 10.19 per cent. Vietnam is the biggest textile and garment exporter in Asean (the Association of Southeast Asian Nations). The US is the largest importer of Vietnamese textiles and garments, followed by the EU and China.
Free trade agreements that will take effect in 2020 and the penetration of international brands are also expected to favor the industry’s growth. By signing a series of free trade agreements, Vietnam hopes to create a large playing field for its textile and garment enterprises. Among these are the EU-Vietnam Free Trade Agreement (EVFTA) and the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) bloc.