Vietnam Textile and Garment Industry
Vietnam has become industrially a strong nation. Their socio-economic set up is growing and getting better with the passage of time.
Vietnam Textile and Garment industry has declared world’s fourth largely exporting industry according to 2011 ranking details and gaining tremendous revenue per anum.
There is a huge description of Vietnam industrial achievement in form of huge exports earning in billions of dollars which is increasing the economic stability level of the country.
The record increase in export was of US$17.2 billion in 2012 and it kept on increasing per anum by 8.5%. Textile and Garment industrial sector decided to retain the growth from 10-12% and to earn the revenue of US$ 18.5-19 billion in 2013.
Vietnam looked quite dedicated to earn US$ 8.5 billion from shipments to the US market (up 11%); around US$ 2.4 billion from Japan (up 18%); US$ 1.5 billion from the Republic of Korea (up 15%); US$ 2.4 billion from the EU and US$ 4.2 billion from other markets in 2013.
Vietnam has become industrially empowered state and it is contributing its maximum of foreign revenue in state’s other developmental projects. Stats shows that Vietnam textile and garment industry is based on more than 3,800 companies.
0.5% of Vietnam’s business is based on enterprises which the state actually owns and 75% is of limited companies and joint stock.
So many progressed apparel and textile companies like Victoria's Secret, and Wal-Mart, Itochu, JC Penney, Jupitar, Kmart, Kowa, Lee Cooper, Li & Fung, Sumitomo, Tomen, Tommy Hilfiger consider their apparel and garments from Vietnam because of its lesser labor cost. Vietnam looks more targeted and interested to increase its industrial strength and it looks dedicated to increase the total investment capital approximately to US$25 billion by the end of 2020.
Apart from this all, new projects are about to initiate in Vietnam due to its stable industrial situation and continuous growth like there is a possibility of Trans-Pacific Partnership Agreement (TPP) as it has directed a new influx of foreign investment in dyeing, spinning and weaving sectors. A 100% Korean invested enterprise by name Kyung Bang Vietnam has invested US$40 million for implementation of the starting phase of the project of spinning factory with the potential capacity of 6000 tons per year in the Bau Bang Industrial Zone in Binh Duong province. Another Hong Kong based company by name Texhong is quite eager to build a spinning factory with the estimated investment amount of US$ 300 million in the Hai Yen Industrial Zone in Quang Ninh province. Similarly Vinatex and Japanese company Itochu has also engaged their investments in order to run 50,000 spindle factory, with the investment of 120 million dollars.
In a nutshell, Vietnam’s GDP is assumed to reach to US$ 235 billion by 2025. About Garments and Textile industry it is expected to get the approx. turnover of US$ 28.5 billion by 2025.
Vietnam’s government looks quite enthusiastic about future of textile and garments industry for its more success and in result more increase in economic strength of the state.