Following the EU-Vietnam Free Trade Agreement (EVFTA) and the recovery from the Covid-19 pandemic, Vietnam now eyes opportunities to boost its apparel and textile exports. Crucially, the recently-signed EVFTA is expected to reduce more than 70% of tariffs on Vietnam’s garment exports.
According to the Vietnam National Textile and Garment Group, the domestic textile and apparel industry will focus on the manufactugin of sportswear and yarn. The increasing awareness of the importance of physical activity during the pandemic was the main driver of the surging demand for sportswear. The sportswear market grew at a compound annual growth rate of 6.5% over the 2015-2020 period, and is projected to be worth USD 479 billion globally by 2025.
In this context, it is worth highlighting that the construction of a new 25,000-square-meter textile factory started in March 2021 in Tay Ninh Province in southern Vietnam. According to the Tay Ninh Management Board of Economic Zones, USD 15 million have been invested in the project, which is expected to be completed in six months.
(Sources: Fibre2fashion, Bizhub, Vietnamplus)