Vietnam’s small and medium-sized textile and garment enterprises face financial and technical difficulties

According to a report by “Vietnam Economy” magazine on March 4, statistics from the Industrial and Trade Information Center of the Ministry of Industry and Trade of Vietnam showed that as of the end of 2019, there were 758,000 textile and garment companies in Vietnam. Operations. Among them, foreign-funded enterprises and larger local enterprises account for 30%, and the remaining 70% are small and medium-sized enterprises. Small and medium-sized enterprises generally face difficulties such as technological updates, funds and management experience. According to the provisions of multi-bilateral free trade agreements such as CPTPP, RCEP and EVFTA, Vietnam’s textile and apparel industry faces many opportunities to participate in the global textile and apparel supply chain. However, due to weak financial and technical strength, Vietnam’s small and medium-sized textile and garment enterprises can only participate in the tailoring and sewing links with low added value, and it is difficult to transform into models such as FOB (full distribution) and OBM (own brand production). Moreover, wages in the textile and garment industry are lower than in other industries, and workers are more willing to work in industries with higher wages, resulting in a labor shortage in the textile and garment industry.