The doors to export markets have opened after the signing of government-to-government agreements. However, enterprises still have to overcome many challenges.

VietNamNet Bridge - PM Nguyen Xuan Phuc, at a conference held in late December, said the localization ratio in the textile and garments, and footwear industries, has risen to 40-45 percent.

The foreign direct investment (FDI) flow into the textile & garment and footwear industries increased sharply after Vietnam signed the EU-Vietnam FTA and CPTPP, and is expected to continue to rise in the context of the US-China trade war.

VietNamNet Bridge - Vietnam’s textile & garment industry is reaping the benefits from the China-US trade war.

Foreign investors have poured more money into yarn, garment and accessories projects, while Vietnam needs more projects on textile, dyeing and trimming projects to form closed textile & garment value chains.

VietNamNet Bridge - Vietnam has lured big investments into the textile & garment industry, but the projects are unwelcome in localities for fear for pollution.

Tran Anh Tuan, deputy director of the HCMC Center for Human Resources Forecasting and Labor Market Information, said that the risk of losing jobs has increased in the 4.0 industrial revolution era. 

VietNamNet Bridge - A new investment wave is expected to hit Vietnam’s textile & garment industry in the time to come, triggered by the Vietnam-South Korea FTA.

VietNamNet Bridge - Investors in the textile and garment industry are complaining that local authorities are turning down new textile and dyeing projects for fear of pollution.

VietNamNet Bridge - Once the EU-Vietnam FTA (EVFTA) is signed and the tariff is cut to zero percent, textile and garment exports to the market may obtain 7-8 percent growth rate per annum, experts say.

FIEs have organized production according to the OBM mode, in which they undertake all important phases of the production chain, from design and production to distribution. 

VietNamNet Bridge - Garment companies have yet to feel the pressure from the 4.0 industrial revolution, which is expected to replace many workers with robots as automation becomes more widespread. 

VietNamNet Bridge - While Vietnamese garment companies think the domestic market is too small, foreign investors consider Vietnam the "new land" to exploit, with the garment market worth $4.5 billion. 

VietNamNet Bridge - Restructuring the textile and garment industry involves drawing up a new development strategy, using new technologies, and closing fiber and textile factories that use outdated technologies. 

VietNamNet Bridge - With the collapse of TPP, the textile & garment industry will have to revise its investment and development strategy.

VietNamNet Bridge - Vietnam’s textile & garment sector will maintain current growth if the US withdraws from the TPP, analysts say, but the growth would be higher if the TPP is approved by the US.

VietNamNet Bridge - US President-elect Donald Trump is opposed to the Trans Pacific Partnership (TPP) trade agreement. Will this affect Vietnam’s textile and garment exports to the US?

VietNamNet Bridge - While foreign investors flock to Vietnam, many textile projects developed by Vietnamese investors have failed, raising concerns about the future of Vietnam’s textile & garment industry.

VietNamNet Bridge - Unlike two years ago, when Vietnam witnessed a wave of foreign direct investment (FDI) in textile & garment projects, the capital flow into the sector has slowed down.