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Will denim be able to gain its foothold in Vietnam?
Export of denim apparels from Vietnam to the US
US $ 173 million 2016
US $ 207.29 million
19.6%
2017
US $ 248 million
20%
2018(Tentative)
20.49 million pcs
25.24 million pcs
27 million pcs
2016
2017
2018(Tentative)
When the industry is growing, then why the struggle...
Produces high-end garments, like ski jackets, leather jackets and outerwear, so the volume is always less
“The unfortunate part is that very few have invested in laundry in Vietnam and most of them still use outside laundry,” – SM Junaid Javed, Executive Chairman, SM Group
Negligible investment in laundry
Expensive labour in Vietnam In Vietnam, the minimum wage is, on average, US $ 165 while it is just US $ 68 in Bangladesh
Labour moving to fast-growing electronics sector and tourism industry
Yet, the future of Vietnam looks bright
Top garment exporters are growing in Vietnam: Phong Phu International: 18 to 24 million pcs per year Saitex International: 5 million pcs per year Nhabe Corporation: 5 million pcs per year
The companies having their own denim mills: Prosperity Textiles: 43,891,200 mtrs. annually TCE Denim: 38,404,800 mtrs. annually Phong Phu International: 24,000,000 mtrs. annually Sasha Denim: under consideration
Big players from Taiwan, Korea and China are investing – and investing big – in Vietnam
TCE Denim's latest project of 30 million meters per annum kicks off in Hoa Xa IZ in Nam Dinh province
Upcoming FTAs between EU and Vietnam to enhance investment opportunities
CPTPP will further boost Vietnam’s economic reforms
32%
increase of Vietnam GDP
4%
increase of export growth rate
3.8%
increase of import growth rate
Denim is improving fast in Vietnam and what is good is that there is now more investment on technology and machinery. So, I am sure Vietnam is slowly heading towards being the denim leader –Jordi Calucho, Technical Marketing Executive, Archroma
What more could be done....
More denim consultants from Europe need to be associated with denim factories More initiatives on saving water and energy
The progress is slow but Vietnam is all set to be the denim leader in the years to come
With a formidable reputation for excellent needle work and churning out flawless jackets with any number of panels, even the most complicated products with highest number of value additions are possible in Vietnam –- Anil Mishra, Country Manager, Asmara Vietnam
Vietnam is one of the world’s leading destinations for investors in the textile & garment industry due to the bilateral and multilateral agreements that the country has signed. CPTPP and FTA are only going to facilitate the development of the industry –Nguyen Thi Tuyet Mai, Secretary General, VITAS
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