Emerging as a new contender, the Vietnam garment production industry is a significant part of the world’s economy and an energizing prospect for both neighboring and overseas companies. It recently became the third-largest textile and apparel exporter after China and Bangladesh. But it has the fastest-growing production of any region. Over 6,000 factories have sprung up in Vietnam devoted to apparel manufacture and clothing manufacture, and the industry employs over 2.3 million people all over the nation. About 70 percent of these factories have their base in or around Hanoi and Ho Chi Minh City. In 2016, Vietnam Exported over $28 Billion worth of apparel and Textiles, with the United States and the E.U. being two of the most predominant destinations. Vietnam is a well-balanced sourcing destination with one of the fastest pace to market prices, reasonable expense, and modest social enforcement. Here is a list of all the types of Clothes, Shoes, Textiles, and apparel manufactured in Vietnam:
- Children’s Wear
- Kid Clothes
- Home Textiles
- Furniture Textiles
- Professional Fabrics
- Casual Wear
- Shirts/ tops
- Outerwear (Jackets, Hats, etc.) (Jackets, Coats, etc.)
- Formal Dress
- Professional Fabrics
- Children Clothes
- Home and Decor Textiles
- Ready-Made Apparel
- Woven products
Strengths and weaknesses of Vietnam textiles manufacturing:
1. Low cost: Vietnam is one of the cheapest countries to import garments, textiles, and footwear without compromising efficiency.
2. Free trade and low tariff rates: Vietnam has Free trade deals with All of Southeast Asia, as it is an ASEAN member, plus Japan, South Korea, India, Australia. It might have a new free trade deal with the E.U. this year and has a bilateral trade deal that’s just shy of free trade with the United States.
3. High standard of production: When it comes to the standard of finished products for clothes, Vietnam is among the world’s top 90 percent.
4.Lead period: In the fast fashion industry, there is a concept called Pace to Market, also called Make to Market, which is the speed that an item goes from the start of manufacturing and into a retail store primed for sale. Vietnam has one of the highest speeds in the world when it comes to Fashions and Apparel.
1. Limited options for Order Quantity: Vietnamese producers are less likely to do limited orders, usually less than 2000, and trial runs. The low M.O.Q.s will create particular problems for those who choose to start modestly and scale-up.
2. Dependency on the Chinese market for imports: Even though Vietnam has an excellent base to supply raw materials in-country, many components such as buttons and zips need to be purchased and imported from China. This additional stage, however, adds as much as a month to the manufacturing cycle.
3. Logistics of Transporting Clothes in-country is not optimized: Another point to keep in mind is that logistics in-country are less developed than they are in China. As a result, there could be delays in bringing a container from the warehouse to a port, for starters. Ports are frequently overcrowded, and it’s not unusual for a week-long wait until the shipment can reach the terminal.
LIKE THIS ARTICLE?