Vietnam textile & garment sector targeting $60 billion worth of exports by 2025
In 2018, the textile & garment industry in Vietnam earned $36 billion from exports, up by 16 percent vis-à-vis 2017. This year, the textile and garment sector has set a target of $40 billion in exports. Taking advantage of free trade agreements (FTAs) along with competitive labour costs and preferential policies, Vietnam is becoming preferred destination for global buyers and investors. FDI companies have so far invested about US$17.5 billion in the industry.
Participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) shall benefit the country in the long term, helping the garment and textile sector to expand in unconventional markets such as Canada, Mexico, New Zealand and Australia and many other countries.
FTAs play an important role in helping Vietnam move up the value chain in the garment and textile industry. The EU is the second largest buyer country for Vietnam and now with the review of the EU-Vietnam Free Trade Agreement (EVFTA) has been completed, it is likely to be approved by Vietnam’s National Assembly in June. It is expected to have a positive impact on the textile industry in the medium to long term. With EVFTA agreement more than 40 per cent of tariffs applied to garment and textile products are expected to be reduced to zero per cent.Garments News Textile Value Chain Vietnam