Vietnam Regains Lost Ground In The Textile Sector

Economy

Vietnam Regains Lost Ground In The Textile Sector

Overcoming stiff odds because of competitive pricing from countries like Bangladesh, Cambodia and Myanmar that benefited from cheaper labor costs, the Vietnamese textile sector has regained grounds in the global markets. Just a year back local textile sector was faced with a tough financial situation because of buyers shifting their orders to cheaper sourcing countries.

However, after injection of investments in new technology that helped adjusting costs and tweaking of government policies in favor of the local textile business the investors’ mood changed and they regained confidence in Vietnam for their textile business.

As of now, investors find Vietnam an attractive destination for operating in the textile sector. The perception finds encouragement and optimism because of the multilateral free trade agreements (FTAs) the Vietnam government has already signed and are about to sign.

This view was endorsed by the Vietnam Textile and Apparel Association (VITAS) which came out with a media statement that Vietnam had a reputation for high quality when it came to garments and textile products. VITAS further said, the quality and volumes were backed by quick delivery turn around. The organization cited that these features were absent in the competing countries that afforded cheap labor and the investors felt inclined to revert to Vietnam as the favored destinations for textile investments.