With the accelerated development of globalization, the international industrial chain pattern is undergoing profound adjustment. In this context, Vietnam's textile and clothing industry, with its unique geographical advantages, cost-effectiveness and strong government support, has rapidly risen to become an important player in the global textile and clothing market. This development trend is both a challenge and an opportunity for Chinese textile enterprises.
Development Status of Textile Industry in Vietnam
Vietnam's textile and clothing industry, as one of the pillars of the country's economy, has benefited from the strong support of its government and its active participation in several international trade agreements, such as RCEP (Regional Comprehensive Economic Partnership) and TPP (Trans-Pacific Partnership). Through these agreements, Vietnam has gained preferential access to the markets of major economies, which has greatly boosted the growth of its textile and clothing export industry. According to official data, the export target of Vietnam's textile and clothing industry in 2023 is set between $46 billion and $47 billion, while the export target of the footwear industry has reached $27 billion to $28 billion. The Vietnamese government has also issued the strategic plan of 'Textile and Footwear Industry Development Strategy Until 2030 and Outlook for 2035', which defines the development goals of the textile and footwear industry in the next ten years, including maintaining an average annual growth rate of 6.8%-7% and reaching about $108 billion in exports by 2030.
Challenges
Despite the rapid development of Vietnam's textile and clothing industry, it still faces a series of challenges. Among them, the problem of insufficient capacity is particularly prominent, and many manufacturers have to reject new orders because they cannot meet the rapidly growing order demand. The root cause of this challenge is the ‘big at both ends, small in the middle’ industrial structure feature of Vietnam's textile and clothing industry, that is, the spinning and clothing manufacture links are strong, while the weaving, dyeing and finishing links are weak, resulting in the coordinated development of the entire industrial chain.
In addition, the shortage of labor and raw materials is also an important factor in restricting the development of Vietnam's textile and clothing industry. Vietnam's textile industry is highly dependent on imported raw materials, especially yarns, fabrics and other original auxiliary materials imported from China, which makes Vietnam's textile industry faces greater risks in terms of cost and supply chain stability.
Influence on Chinese Textile Enterprises and Opportunities
The development of Vietnam's textile industry is both a challenge and an opportunity for Chinese textile enterprises. From the perspective of challenges, the competitiveness of Vietnamese textile and garment products in the international market continues to increase, especially in China's traditional export markets such as the United States and the European Union, where Vietnamese products pose direct competition to Chinese products with their cost advantages and tariff concessions brought about by trade agreements.
From the perspective of opportunities, the large demand for medium and high-end fabrics and textile raw materials in Vietnam's textile industry provides a huge market opportunity for Chinese textile enterprises. The shortage of domestic production capacity in Vietnam, especially in the weaving, dyeing and finishing links, can just be supplemented by the capacity advantages of Chinese textile enterprises. In addition, Chinese enterprises have obvious advantages in textile technology, automated production equipment and research and development of environmentally friendly materials, and can deeply participate in all links of Vietnam's textile industry chain through technology export, investment and factory construction, and achieve a win-win situation.
The rapid development of Vietnam's textile industry has brought a complex situation full of challenges and opportunities for Chinese textile enterprises. Through in-depth analysis and understanding of the characteristics and needs of the Vietnamese market, Chinese textile enterprises can better formulate strategies, seize opportunities, achieve mutual benefit and win-win results, and jointly promote the prosperity and development of the regional textile industry. With the reconstruction of the global industrial chain and the promotion of regional economic integration, the cooperation between the two places in the field of textile industry will be closer and have broad prospects.