From being the world’s fourth largest textile industry, after textile giants China, India, and Bangladesh, Vietnam has the potential to soon become the world’s largest textile production centre. At least that is what the country’s rapidly expanding industry has compelled industry experts to assess.
Vietnam, in fact, has all the requisite characteristics of becoming the next production hub in textiles.
According to Le Tien Truong, General Director of the Vietnam National Textile and Garment Group, Vietnam is the only country that has maintained a consistent two-digit growth rate in the sector, a fact that only reaffirms its potential of becoming a world leader in the industry in terms of size.
According to Truong, any country that is to become the world’s textile production center must have some qualities.
For instance, the country must be able to supply 10 per cent or more of the global demand; it should have secure sustainable development for 20 to 30 years; possess an established supply chain with 50 to 60 per cent of the materials domestically sourced, have a relatively large domestic market, and have access to seaport networks convenient for the shipment of products in the shortest possible time, among others.
With reference to these qualities, he further asserted that Vietnam possesses all of the requisite characteristics to become the centre of international textile production.
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However, Truong also suggested a few measures that Vietnam should take in order to realize its dream like increasing labour productivity and domestic supply ability to 60 per cent by 2020, improving the quality of human resources, and investing or call for investment to establish 10 to 15 material production and design centers to supply garment companies throughout the country.
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Currently, Vietnam ranks 4th in textiles after China, India and Bangladesh. In 2015, Vietnam’s textile industry exported garments worth US$27.3 and employs 2.5 million workers, constituting a fifth of all new jobs created in the country.