November 22, 2022
Manufacturing -
Guide to The Textile and Garment industry in Vietnam | OneLink Holdings
A comprehensive guide to the textile and garment manufacturing industry in Vietnam, including information on history, regulations, major players, popular factories and more.
Vietnam Overview
The textile and garment industry are one of the most important industries in Vietnam, with garments accounting for approximately 30% of the country’s total export value. In this blog post, we will provide an overview of the Vietnamese textile and garment industry, including its history, development, current state, and prospects.
Vietnam’s textile and garment industry is on track to hit the $42-43 billion export target in 2022, signifying significant recovery from the COVID pandemic. The current export value of the garment and textile industry was estimated at $22.5 billion for the first half of 2022, which is a 17.7% increase from last year. This figure includes approximately $16.94 on garment exports, $1.4 billion from fabric exports and $2.76 billion from fibre exports.
There are approximately 6000 textile and garment manufacturing companies, with an employment figure of over 2.5 million in Vietnam. The top textile and garment export markets are the US, Europe, Japan and South Korea. In recent years, there has been a shift from low-end garments to higher-end garments, with exports of garments to developed markets such as Europe and North America growing rapidly.
History and Development of the Vietnamese Textile and Garment Industry
The textile and garment industry in Vietnam has a long history, dating back to the days of the Nguyen Dynasty in the late 19th century. At that time, a few French companies established factories in Vietnam to produce textiles for the local market. However, it was not until after Vietnam’s independence in 1945 that the domestic textile and garment industry began to develop rapidly.
In the early years of Vietnam’s socialist economy (1954-1975), the domestic textile and garment industry was focused on meeting the needs of the local market. Textile production was limited to a few state-owned enterprises (SOEs) using imported equipment and technology. After 1976, as part of the Doi Moi (Renovation) policy, Vietnam began to liberalize its economy and encourage foreign investment. As a result, several foreign-invested enterprises (FIEs) were established in Vietnam, which helped to modernize the country’s textile and garment industry.
The current textile and garment industry can be divided into 3 sub sectors: the upstream sector with fibre production, the midstream sector for fabrics and dye, and the downstream sector for manufacturing of garments. The downstream sector for garment production accounts for 70% of the total garment and textile sector.
With participation in 16 Free Trade Agreements around the world, Vietnam is considered an attractive environment for foreign investment opportunities. In 2022, foreign investment enterprises (FIEs) made up 70% of the total garment and textile exports. International brands such as Zara and H&M are fast becoming well known in the Vietnamese fashion world; with stores in key cities of Vietnam with manufacturing also sourced locally. In December 2019, Uniqlo opened its first store in Ho Chi Minh City, along with Australian brand Cotton On. Other brands manufactured in Vietnam include Nike, Adidas, North Face and Calvin Klein.
Popular Clothing Manufacturing Companies
The following represent the most popular clothing manufacturing companies used throughout Vietnam:
Thai Son S.P Sewing Factory
This family-owned factory provides cut and sew knitted garments for men, women and children. They have two production locations in District Nine HCMC and in Sung Nhon, Binh Thuan Province, with office headquarters in Ho Chi Minh City. Well-known companies such as Calvin Klein and Country Road have used this factory for production of various items.
Factory staff: 990
Product Capacity: 250,000 pieces per month
Regular Minimum Order Quantity (MOQ): 1000 per colour and style
Lead Time: 60-110 days depending on design, order quantity and requirements
Dong Nai Garment Corporation
Established in the Dong Nai province, Bien Hoa city, Vietnam, they produce fashion and sports goods, medical goods, high tech products and non-woven fabric. They have worked with companies such as Samsung, Under Armour and Asics.
March 29 Textile Garment Joint Stock Company (Hachiba)
Established on March 29, 1976, March 29 Textile Garment Joint Stock Company has 8 factories, located in Da Nang City Vietnam. They produce sportswear, medical scrubs, cotton towels and formal suits. They have partnered with well-known brands such as ASOS and BooHoo.
Factory Staff: 3400 +
Product Capacity: 15 000 00 products per month
Fashion Garment Ltd
Fashion Garment Ltd was established in 1994 with 100% foreign investment. They have 8 factories across Vietnam, with headquarters in Bien Hoa City, Dong Nai Province, Vietnam. They produce all types of garments including shirts, shorts, activewear and hoodies.
Factory staff: 10,000
Product Capacity: 8.5 million per factory per month
G & G II Garments Factory Vietnam
Established in Ho Chi Minh City in 1984, they manufacture knit and woven garments including day and evening dresses, tops/tees and pants. They also produce private label clothing, with in-house designers to produce new styles.
The Future Prospects of the Vietnamese Textile and Garment Industry
There is still a risk with strict COVID policies implemented in trade partners such as China, Japan and Taiwan, having significant effect on the supply chain of raw materials and accessories. Despite challenges such as declining labour costs in competing countries and rising production costs in Vietnam, there are still many opportunities for further growth of the Vietnamese textile and garment industry. One potential area for growth is in ethical manufacturing, as Vietnam has established a reputation for being a reliable source of well-made garments. In addition, there is also potential for growth in innovative textile products made from sustainable materials such as bamboo or soybeans. With continued effort from both government and businesses alike, we believe that the Vietnamese textile and garment industry will continue to thrive in the years ahead.
The Vietnamese textile and garment industry is one of the most important industries in Vietnam with great prospects for future growth. If you are looking for high-quality garments manufactured ethically or innovative textile products made from sustainable materials, Vietnam is a country worth considering!
OneLink Holdings have established connections with multiple manufacturing companies on the ground in Vietnam and are ready to help with any clothing or textile needs. Contact us today to find out more about the services we can provide in Vietnam.
Written By
One Link Holding team
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