Vietnam’s garment industry poised for transformation amid global shifts

22nd edition of Vietnam International Textile and Garment Industry Exhibition

Vietnam’s garment industry, one of the top three exporters in the global market, is a cornerstone of the country’s economic prosperity, contributing 15-20% of total exports and providing over 3 million jobs. As global apparel market demand rebounds post-COVID, the industry stands at a pivotal juncture. According to Mordor Intelligence, the global apparel market, valued at approximately US$1.5 trillion in 2021, is projected to grow at a compound annual growth rate (CAGR) of 5.5% from 2022 to 2027. This robust growth, coupled with shifts in global supply chains due to ongoing geopolitical tensions, positions Vietnam to seize significant opportunities.

The Vietnamese garment sector has the potential not only to elevate itself into higher value-added activities but also to foster sustainable development and inclusivity within the nation’s economic, social, and governmental frameworks. Embracing this moment could transform the industry into a leading player in the global textile supply chain, promoting long-term resilience and innovation.

In 2024, the Vietnam International Textile and Garment Industry Exhibition (VTG) showcased over 380 exhibitors from 12 countries and regions, including four featured pavilions from India, the Republic of Korea, China, and Chinese Taipei. The exhibition focused on factory digitalization, aiming to propel Vietnam’s textile industry towards Industry 4.0 and facilitate its digital transformation.

A full-day executive seminar titled “Elevating the Textile & Garment Industry value through high-impact Fabric Supply Chain”, organized by CCX Partners in collaboration with Chanchao International, marked a significant event during this year’s VTG. Held on the exhibition floor, where over 380500 global exhibitors showcased their innovations, the seminar attracted more than 30 VIPs and industry leaders from renowned companies, such as VF Corporation, PVH, Decathlon, and Adidas, as well as top local manufacturers like Yodi, Thai Tuan, Viet Thang, SAITEX, VINATEX, and Tan Hiep Thanh Textile.

The seminar commenced with a keynote address by Mr. Shafiar Rana, Manager of Global Factory Compliance Standards & Strategy at VF Corporation. With over a decade of experience in the global garment industry, Mr. Rana provided a comprehensive analysis of Vietnam’s position in the market, highlighting the critical challenges that must be addressed for the sector to achieve more inclusive and sustainable growth.

Following the keynote, a panel discussion moderated by Mr. Ralf Wasmuth, Senior Consultant at ARC Consulting, featured insights from industry experts, including Mr. Daniel Chan, Founder & CEO of Intereras; Mr. Tri Tran, former Lean Manager at Decathlon Vietnam; and Ms. Giang Nguyen, Country Brand Manager at DETERMINANT, Tessellation Group. The panel explored strategies for navigating the evolving global textile landscape, emphasizing the importance of adapting to stringent compliance requirements as a strategic advantage for integration with key markets like the US and EU.

International panelists showcasing Vietnam’s key position in the global value chain

Addressing Key Challenges and Opportunities

Panelists addressed Vietnam’s current dependency on imported materials, noting that over 80% of the sector’s raw materials are sourced externally. This reliance, coupled with geopolitical disruptions affecting the supply of essential materials, underscores the need for the Vietnamese textile industry to develop a more resilient, localized supply chain. Experts also highlighted the necessity for Vietnamese producers to adopt flexible, innovative approaches to meet the evolving demands of international clients, thereby enhancing their competitiveness and value in the global market.

Audience filled with industry practitioners from 12 countries

The seminar concluded with a networking session, enabling participants to connect and explore collaboration opportunities. Discussions throughout the day highlighted both the challenges and the immense potential for growth and transformation within Vietnam’s textile and garment sector. By focusing on sustainable development and higher value-added activities, the industry is well-positioned to capitalize on global shifts and continue contributing significantly to Vietnam’s economic prosperity.

Ms. Phuong Nguyen, a representative from CCX Partners, stated, “Chanchao International and CCX Partners aim to create an integrated platform for foreign investors and manufacturers to understand, connect, and succeed in the Vietnamese market through these thought leadership seminars. We want to provide trusted and industry-relevant insights right on the exhibition floor.”

The event demonstrated the collective commitment of both local and international stakeholders to drive the sector forward, ensuring its continued success and integration into the global textile supply chain while aligning with Vietnam’s sustainable development goals in the garment sector.