Vietnam plans to become the world’s third major supplier of garments and textiles. With Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the imminent signing of a free trade agreement between Vietnam and the European Union, this target is as possible. The CPTPP is expected to cut import tariffs and diversify products available in CPTPP member countries. CPTPP is expected to help the economy grow 1.3 per cent and boost export turnover by four per cent.

Another element would be the trade war between the United States and China, the world’s major garment exporter, because Vietnam is maneuvering to occupy market niches that would be banned to China in the United States, including garments. Vietnam’s major importer is the United States, with more than 50 per cent of the total exports, followed by Japan, South Korea and China, which import about 70 per cent of the production altogether.

Many companies in the sector have speeded up production since early 2019 to meet large orders for the first trimester. In 2018, the export turnover of garment and textile products marked a year on year increase of 16 per cent. However, Vietnam has to depend on raw material imports. Enterprises have to import over 60 per cent of the raw materials they need.