Apparel and footwear industry in Vietnam - statistics & facts
Vietnam has emerged as one of the leading textile exporting countries worldwide in recent years. Garment and textile products are among its major commodities based on export revenue. As Vietnam reduced its reliance on agriculture, the manufacturing sector has become an important pillar of its modern economy. Next to apparel export demands, domestic consumer spending on clothing and footwear has been growing steadily, driven by the improving living standards of the local population.
Vietnam is highly dependent on imports of raw materials such as cotton, fiber, yarn, textiles, and garments for clothing production, as domestic supply has not been sufficient in recent years. For instance, due to the decreasing domestic production of cotton, the country has been a net importer of this material, with Brazil and Australia being its largest cotton suppliers in recent years. Heavy reliance on imports poses significant risks to the apparel manufacturing industry. Along with the pressure to meet domestic demand, the government has been prioritizing the development of the domestic raw material supply chain for the textile, garment, leather, and footwear industries.
Apparel manufacturing sector in Vietnam
One of the main competitive advantages of the Vietnamese manufacturing industry lies in its skilled workforce yet low labor costs. As a result, the industry has become one of the leading sectors for foreign direct investment in Vietnam. Consequently, the export of apparel products relies largely on the production capacity of foreign-owned companies and local private subcontractors. At the same time, local production and imports address the growing domestic demand for apparel products.Vietnam is highly dependent on imports of raw materials such as cotton, fiber, yarn, textiles, and garments for clothing production, as domestic supply has not been sufficient in recent years. For instance, due to the decreasing domestic production of cotton, the country has been a net importer of this material, with Brazil and Australia being its largest cotton suppliers in recent years. Heavy reliance on imports poses significant risks to the apparel manufacturing industry. Along with the pressure to meet domestic demand, the government has been prioritizing the development of the domestic raw material supply chain for the textile, garment, leather, and footwear industries.
