Vietnam’s garments and accessories exports raked in US$20 billion last year, beating set targets by US$1 billion and maintaining an annual growth rate of 18%.
The Vietnam Garment and Textile Group (Vinatex) noted accessories exports contributed US$700 million to the total.
Domestic support industries are unable to supply as many as 30 Vietnamese economic and technical sectors. Production often relies on imported materials
Vinatex reports domestic accessories are finally enabling garment makers to cease costly material purchases from China, the Republic of Korea, Bangladesh, and other markets.
Garment 10 Company General Director Nguyen Thi Thanh Huyen says the proportion of locally made materials in its products has increased considerably over the years, from 30–40% originally to its present 60%.
The company, one of Vietnam’s leading garment makers, manufactures more than 200 million products annually for both domestic use and export. Garment 10 has earned consumer trust.
Vietnam’s garments export earnings are almost certain to exceed US$20 billion in the very near future after the successful negotiation of free trade agreements like the all-important Trans-Pacific Partnership (TPP) deal.
But the availability of locally made materials remains comparatively modest—the cumulative US$10 billion total value is not enough to attract additional investors to material manufacturing.
Raising the proportion of local content in garments will become even more important after Vietnam joins the TPP. Experts believe Vietnam has little choice but to increase the scale of its exports.