Việt Nam’s garment and textile sector is set to expand its market share globally, taking advantage of free trade agreements (FTAs) to become “a manufacturer of the world's established brands”, a trade and investment official has said.
With an export target of US$40 billion set for 2019, this year is considered an important year for Vietnam's textile and garment industry in two potential export markets: Canada and Australia. Vietnam currently holds 4-5% market share in these markets. However, there are still many hurdles that the industry needs to overcome to capitalize on opportunities in CPTPP.
Many textile and garment enterprises have improved operations to prepare themselves for the list on the stock market. Sông Hồng Garment JSC debuted on the Hồ Chí Minh Stock Exchange (HoSE) in late November by listing more than 47.6 million shares with the code MSH.
Vietnam had become increasingly appealing to large foreign investor groups in the textile and garment industry who wanted to seize opportunities when the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) takes effect in January next year, according to analysts.
Japanese firms are scaling up investment into Vietnam’s textile and garment sector to take advantage of the huge market potential and Vietnam’s new-generation free trade agreements.
Two major foreign direct investment projects on accessories production in the textile and apparel industry concurrently coming online late last month have boosted the sector’s production capacity as well as perfected its supply chain.
Chairman of Ha Tinh People’s Committee Dang Quoc Khanh has signed a decision approving the construction of Haivina Hong Linh garment factory at Nam Hong Industrial Zone.
Investing in logistics and applying lean management are considered two of the solutions to optimise the supply chain, helping domestic garment and textile firms to solve the issues related to warehousing operations to save costs and increase competitive capacity.