Textile and Garment Industry in Vietnam by xQ826l5g


									Garment Industry

   in Vietnam
• In the past years, garment industry of
  Vietnam has achieved a lot of success
  in the resolution of employment for
  workers as well as the contribution to
  the country’s export turnover.

• Vietnam is listed in the top 10 leading
  garment exporters in the world -
  making it the world’s ninth largest
  garment exporter.
• Currently, the United States market is the
  largest export market of Viet Nam, accounting
  for 57% market share for export,
• EU market accounts for 18%, OTHERS,
• Japan is 9%.                   JAPAN, 9%
                                            USA, 57%
                                  EU, 18%

                                            Export Market Share

• Export to Japan & Taiwan is being recovered.
• Activities of expanding the market into Africa and
  other countries in Asia are quite good.
• Export turnover of garment products to these
  markets is highly increased.
• Export turnover of garment products of Viet
  Nam is constantly increasing over the
• In 2003, the export turnover was just at USD 3.6
• then in 2004, it reached USD 4.3 billion;

• in the end of 2007, Vietnam had more than 2,500
  textile and garments businesses in operation,
  they employed about two million workers, and
  the export turnover hit USD 7.8 billion.
• LATEST NEW: Garment Industry is ranked 2nd
  among the Vietnam’s biggest export industries
  with USD 9.1 billion for the year of 2008, 18%
  increase compared with the same period last
  year .
                                 Textile & Garment Export Turn Over of Vietnam

         Export Turn Over

           (USD Billion)

                             5                4.3
                             4       3.6

                                    2003     2004      …       2007     2008

Export turnover of garment products of Viet Nam is constantly increasing over the years.
In the unfavourable context of global
economy, with high inflation, and
especially the cutting-down of
spending in the main import markets
as U.S., EU, Japan ..., the 2008’s
result has clearly shown the efforts of
the garment export enterprises to
overcome the difficulties, and the
flexibility of the government policies.
• From January to August 2008, garment enterprises had to
  face the fluctuation of exchange rate, scarcity of U.S.
  dollars, that heavily affected the import of raw materials for
  In addition, bank interest rate was too high, exceeding
  several times higher than the profits of enterprises, so the
  expanding investments were stuck.
• From September to the end of the year, the industry coped
  with the affect from the economic crisis in America and
  Exports to the U.S. had decreased 5.15% only in October
  and November.
  Especially since the end of November, the orders of
  Quarter 1/2009 were cut off drastically. The small and
  medium enterprises faced many difficulties when signing
  new orders, 7-15% of enterprises have been closed, some
  enterprises owned by Korean, Taiwanese ... quit the
• In addition, since early 2007, Vietnam has been closely
  monitored by the monitoring program of apparel imports
  that the U.S. applied.
However, Vietnam remains the
growth with 2 digits,
which is 18% for the whole
while many export
countries in the
world get negative
According to the evaluation of the World
Association of Apparel, Vietnam can remains
growth due to high stability of export market.

Moreover, garment companies have sought to
expand beyond their traditional markets
• Some had entered the Middle East with brocade,
• Other’s products had been in the Czech Republic
  and South America,
• Fashion products of Vietnam is officially exported
  to Algeria,
• Others have conquered two more EU countries
  when just introduced the first shipments to
  Portugal and Spain…
In addtion to the efforts of the community of garment
enterprises, the Government and especially, the
Ministry of Industry and Commerce, together with
the Vietnam Textile Association (VITAS) have
implemented several flexible external and internal
measures to deal with trade barriers.

Furthermore, after 2-year monitoring, on November
26, 2008, US Department of Commerce officially
announced that there is insufficient evidence to
warrant self-initiating an antidumping investigation.
This is the final review under the import monitoring
program that will conclude at the end of this
 In the year of 2009,
     the export of
garment products of
  Vietnam could get
  more difficulties.
• The world economy will still not escape
  from degradation.
• The demands from two large markets,
  the U.S. and the EU, will decrease about
  15%, as the economic growth forecast of
  America's and the EU’s is negative.
• Therefore, export growth of garment
  industry in 2009 is expected to increase
  only 5%, reaching about 9.5 billion USD

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