In the wave of factory relocation, many textile and garment enterprises will continue to choose Vietnam as their headquarters from now until 2025.

According to economic experts, the relocation of production chains from China actually started before the US-China trade war broke out, but this process happened faster since the COVID-19 epidemic. outbreak. Vietnam is one of the markets chosen by many “big guys”.

Names like Samsung, Intel, LG, Canon… have proven the attractiveness of the Vietnamese market. Because, over time, these businesses are constantly expanding their scale, with revenue and profit skyrocketing every year. Besides, many textile and garment enterprises also choose the Vietnamese market because of the advantages of labor cost, skill, transportation, policies…

Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas), said that in the past Japan, Korea, Taiwan, and China were considered the leading textile “powers” in the world. Now, these countries and regions are gradually reducing the production of this field.

Investors in the textile industry have seen many opportunities in Vietnam. Photo: Quy Hoa.

Currently, the Italian textile factory has quickly poured investment capital in a large-scale production cluster from yarn – weaving – dyeing – sewing in Phu Cat district, Binh Dinh province and a textile factory project in Pho Noi Industrial Park (province). Hung Yen). The Italian factory is very nice and modern. According to Mr. Giang, foreign factories entering Vietnam have provided plenty of input materials for garment enterprises.

Another note is that production was only previously mainly invested by Korea, but now Vietnam has all production factories owned by investors in 5 countries with the world’s leading manufacturing industry. . This shows that investors in the textile industry have seen many opportunities in Vietnam, Mr. Giang said.

When factories move to Vietnam, it will help domestic enterprises increase the localization rate and enjoy investment incentives as committed from the Agreements.

Currently, Vietnam only meets the domestic demand from 47-48%, and with the increase in investment movement from other countries, the industry can reach 67-68% in the near future. This also helps Vietnamese enterprises increase production value out of outsourcing to orders. According to Mr. Giang, in fact, the proportion of enterprises in the domestic textile and garment industry that do pure processing has decreased much, gradually switching to FOB or OEM…

Textile enterprises are facing difficulties in orders. Only a few businesses receive about 50-60% of orders for September, the remaining months of 2020 and 2021 are not clear. The textile and garment industry has also lowered its export target compared to the beginning of the year, from 40 billion USD to 32-32.5 billion USD because of concerns about COVID-19.

By: Nhịp Cầu Đầu Tư