“Vietnam’s textile and garment industry has a mixed picture: The golden opportunity for growth and, at the same time, big systemic and geopolitical challenges. The industry can and should become a strategically friendly link in global textile and garment supply chains,” Dr. Hoang Xuan Hiep, president of the Hanoi Textile and Garment Industry University, told The Saigon Times. Risks and challenges The garment sector remains one of Vietnam’s four key export earners, contributing over 12% to the country’s total export revenue after electronics, machinery and equipment, and mobile phones. However, the industry is facing a dual challenge. Regarding output, the United States is the biggest market that determines the direction of production of Vietnamese textile and garment businesses. What matters is that America is a market with uncertain policies in tariff, origin tracking, forced labor, and recently, requirements regarding environment, social and governance (ESG). These changes may cause shocks for the industry if it does not have timely preparation. In view of input, more than 60% of textile and garment materials and accessories are imported from China. This makes the industry vulnerable to supply disruptions, such as during the Covid-19 pandemic or China’s export restrictions. The industry can also face […]
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