Development status of Vietnam’s textile industry

According to Vietnam’s “Industry” magazine, Vietnam’s textile industry has developed rapidly in recent years and has become one of Vietnam’s leading industries, creating a total of 2.2 million jobs, accounting for 35% of the total employment in the industrial field. In 2007, the output of clothing was 1.32 billion pieces, and the export volume was US$7.78 billion. Export volume in 2008 will reach US$9.5 billion, ranking 10th among 153 textile exporting countries in the world.
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The report believes that although Vietnam’s textile industry has achieved great development, it still has the following shortcomings: First, it relies on imported raw and auxiliary materials. At present, 100% of dyes and machinery, 90% of cotton, and 50-70% of auxiliary materials need to be imported; secondly, among the four major links of design, raw materials, production, and distribution, 90% of enterprises are concentrated in the production link, with profit margins Only 5-10%. Only 30% of exported products contain Vietnamese design elements, and the rest are purely processed.
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The report believes that in the future, Vietnamese textile companies should increase investment in design and production (ODM) or brand production (OBM), increase the added value of products, and change the status quo of simple external processing.