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Editorial: Investors will help Vietnam's textile and clothing industry to meet ambitious targets
published in Issue 219, June 2023
The textile and clothing industry in Vietnam is, by most measures, a success story. Over the 15 years to 2022, Vietnamese textile and clothing exports rose by no less than 469%, and in 2019 the country became the world's second largest exporter of textiles and clothing--behind only China. The industry's success has been helped by its low wage levels compared with other countries in the region and by the Vietnamese government's policy of encouraging the private sector and attracting foreign investment by offering a range of incentives. At the same time, heavy investment has gone into strengthening upstream sectors of the textile and clothing pipeline and reducing the industry's dependence on imported yarns and fabrics. Investors have also been attracted by Vietnam's rapidly expanding consumer market and by the expansion of its luxury industry. Recent luxury store openings in Vietnam have included Berluti, Dior, Louis Vuitton, and Tiffany & Co, and many European fashion houses have partnered with a local distributor of luxury brands in the country. However, Vietnam is facing headwinds in its main export markets. Demand from key markets such as the EU and the USA was weakening at the start of 2023, leading to forecasts of a slowdown in growth in the value of Vietnam's exports.
List of contents
INVESTORS HAVE BEEN STRENGTHENING UPSTREAM SECTORS OF THE TEXTILE AND CLOTHING PIPELINE
INVESTORS HAVE BEEN ENCOURAGED BY GOVERNMENT SUCCESS IN MANAGING THE VIETNAMESE ECONOMY AND SECURING A DEGREE OF STABILITY
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