Foreign invested firms account for 70 percent of Vietnam's textile exports

Export revenue of the garment and textile industry hit $39 billion in 2019. It is expected that this year, despite being heavily affected by the Covid-19 pandemic, the textile export turnover could reach $32 billion, SGGP, a news website run by Ho Chi Minh City's Party Committee cited information from the association. 

Vietnam's textile and garment industry ranks at the sixth place in textile exports in the world and ranks second after China among the largest textile exporters in the European market.

In the long run, when the domestic garment and textile enterprises can take the initiative in raw materials for production, they will be able to increase their export market share, especially in the European market, where they only account for 2 percent of the market share.

Many domestic garment and textile enterprises said that authorities need to attract foreign investment selectively in the garment and textile sector.

Accordingly, it is necessary to prioritize investment attraction in the production of raw materials to create conditions for domestic enterprises to complete the garment and textile supply chain and make the most of the advantages of export tariffs.

At the same time, it will help domestic garment and textile enterprises to reduce the risk of antagonistic competition with FDI enterprises investing in Vietnam in the export market.

Source: SGGP