In Focus: The Vietnamese Textile and Garment Exports in 2019
By Rachel

Vietnam increasingly became a preferred country for textile and garment sourcing over the course of 2019. Though Vietnam offers much in the way of garment and textile sourcing opportunities, there remain a number of challenges that make a trusted third party service provider your best option in terms of quality and cost effectiveness.

Vietnam’s textile and garment industry offers low labor costs, stable politics and is currently benefitting from the ongoing US-China trade war. Additionally, new trade agreements that include the European Union – Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), offer even greater prospects for Vietnamese exports in 2020.

Overall textile and garment exports continue to grow: after an exceptional 16% growth in 2018, Vietnam became the world’s third largest exporter of textiles and apparel in 2019 according to statistics from the General Department of Vietnam Customs. By December, 2019 Vietnamese textile and apparel exports were valued at over $39 billion USD.

Export value of the world’s top 3 textile and garment exporting countries between 2017 and 2019 (USD). (Data: Trade Map). It is notable that Vietnam’s growth in this regard parallels that of the world’s second largest producer, Bangladesh.

One of Vietnam’s greatest and ongoing production challenges is sourcing raw materials; however, this too has seen positive signs of change in recent years.  According to statistics from the Vietnam Textile and Apparel Association (VITAS), raw material imports increased by 2.3% to the US $ 22.3 billion, with more than 50% coming from China. Vietnam’s improved access to raw materials will likely continue moving forward, in large part due to new and existing trade deals, as well as increased investment in the country’s infrastructure.

Vietnam’s textile and garment raw material imports from 2015 to 2019 (Unit: millions of USD) (Data: VITAS)

Though Vietnam has made tremendous strides with regard to production and export, there remain persistent shortcomings that can negatively affect your business. The greatest of these challenges exist within the manufacturing process and include low skilled labor and poor internal industrial quality control. These shortcomings, in combination with ongoing logistical and infrastructural challenges can lead to higher internal costs than those of neighboring countries.

Understanding the pros and cons of sourcing textiles and garments from Vietnam is essential before making any important business decisions. Working with a local third-party inspection and quality control company is the best way to overcome challenges and ensure your sourcing experience is a positive one. HQTS is one of Asia’s most trusted and experienced quality control and assurance providers, and will ensure that your products meet your standards at every step of the process. Its range of services include sorting, fabric, pre-dispatch, and pre-shipment inspection, and much more.

Contact HQTS today to learn how its one-stop total quality control approach can make the most out of your Vietnam textile and garment sourcing experience.