Vietnam's earnings from textile and garment exports increased 0.2 per cent in August from the previous month and up 20.9 per cent compared to the same period in 2013. Exports during the last eight months showed a year-on-year increase of 19.7 per cent.

In spite of a high export turnover, the industry recorded a relatively modest added value, which was mainly sourced from its dependence on imported raw materials for production. Domestic suppliers satisfy one per cent of the demand for cotton and 20.2 per cent of fabric needs. Particularly with fibrous materials, the sector has a capacity of producing six million spindles per year, but only 30 per cent of them were used for production.

In view of the trade agreements that will be signed soon, Vietnam has to develop domestic raw materials and promote changes in production methods. These have to be done for improving the quality of textile products that are exported. Other focus areas are reducing inventory and effectively managing imports.

Vietnam’s garment industry is mainly an outsourced manufacturing link, with inactive involvement in the dynamic global textile supply chain. Outsourced domestic manufacturers themselves are also passive in finding customers and expanding markets.