Rise of Vietnam in Textile and Garment Industry

With the experience of hundred years Vietnam people knew how convert thread into beautiful silk with the help of elementary tools. Textile industry started developing from northern part of the country. Now Vietnam is of the leading country in textile and garment industry. This industry is very important for the country because it serve with one of the basic needs of the people is job. There are approximately 6000 textile and garment industry in Vietnam. That are serving more than 2.5 million people with the wage of $239 (2016). This textile and garment industry are 84% privately owned, 15% FDI and rest of the are state owned which is 1%. The textile products of Vietnam have been exported approximately 180 countries of the world.

Present condition
According to the “world trade organization[2019]” Vietnam became the 7th largest textile exporter in the world with export value of 8.8 billion dollar with a growth rate of 8.3%. [2018-2019]

top 10 textile exporters

It also ranked 4thin exporting apparel with the highest growth rate of 7.7%.

top 10 garment exporters

It shows that Vietnam is one of the major textile exporters in the world. It also showed its potential to become a leader in this sector. In 2019 the total export value of Vietnam textile is about $30.6 bn dollar.

The Doi Moi policy
To know the rise in textile industry first we must know about the “Doi Moi policy”. It all starts in 1986 with the “Doi Moi policy” to create a “Socialist oriented market economy”. During Vietnam war (1955-1975) the economy of Vietnam faced many difficulties. In 1975 after the reunification there were problem in production, supply chain, rise in inflation and debt etc. On the other hand, from late 1970s to early 1990s Vietnam was the member of “COMECON”. As a result, they had to dependent on Soviet Union allies. As a result, they became more internationally isolated. To increase economy and its condition “Doi Moi policy” were introduced. “Doi Moi policy” was adapted after Vietnam faced inflation rate up to 700%.

doi moi policy

Doi Moi led to development of policies and regulation. With its policy many states owned company became private. For this reason, many foreign investments came in with many new technologies. First 20 years of economic renovation (Doi Moi) the growth in economy was almost 7.5% every year (1986-2006). Because of skillful worker and low cost most of the foreign company started investing in textile industry.

Factor of excellence
A successful industry is a sum of some good factors. That led an industry to a higher grade. The main factor of this excellent performance is that Vietnam created a textile ecosystem. This ecosystem is created with some grate factors. Because of that many foreign investors invested in this sector.

vietnam garment industry
Fig: Vietnam garment industry

Some key factors are:

  1. Low pay salary of the labor. Vietnam pay much less salary to its worker comparing US, Japan even less than China. As a result, the overall cost is very low. This is a golden factor.
  2. Vietnam worker is very skilled. The quality of Vietnam product is very good in low cost. As a result, the cost is low, but the quality is world class.
  3. Vietnam government policy are very flexible. Their policy helps the industry to grow at its best also attract foreign and local investment.
  4. Vietnam industry are very flexible and very quick on reacting new order.

This industry is growing very fast. With the help of this industry Vietnam can become economically one of the Asian tigers. There are also many opportunities is this sector for future. They are:

The main customer of Vietnam textile product is America, Europe, Japan, South Korea. With the help of low coast and quality product it can expand its market in Turkey, Middle East, Africa, Russia.

Many international brands are manufacturing their product in Vietnam. But many domestic companies are investing in building brand image, product reputation, research on customer need etc. which will lead them to establish “Made in Vietnam” trademark.

Some obstacles
Everything in this world have its bright and dark side. As the industry is growing many problems is emerging. Which are:

Vietnam textile industry depend on other country in term of raw material. Such as 99% of cotton and 70% fiber comes from overseas. Most of them are from China. As a result, they pay lot of tax every year.

Environment pollution is another big problem. Chemical substance pollute water. On the other hand, it needs a lot of power supply to run industry.

From a poor economy to a middle-income country Vietnam have came a long way. With the help of textile and garment industry Vietnam is now 3rd largest apparel exporter. All this happened because of sustainable policy, low cost, skill worker and above all quality product.


  1. Wikipedia.com
  2. Textilelearner.net
  3. Fiber2Fashion.com
  4. Textiletoday.com.bd
  5. logisticsofthing.dhl
  6. https://shenglufashion.com/2020/08/03/

Author of This Article:
Kazi Sadman
Textile Engineering College, Noakhali
Email: nafe2290@gmail.com

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