Vietnam garments sourcing report highlights benefits of trade deals for sector and overseas buyers
Online report features quality casual wear, formal wear, sportswear, sleepwear, underwear, and baby and children’s wear from a listing of more than 100 export suppliers.
HO CHI MINH CITY, Vietnam, Dec. 16, 2016 – The Hinrich Foundation released the Vietnam Sourcing Report: Garments 2016 with the support of its partner in export development, Global Sources (NASDAQ: GSOL).
The online report includes a listing of 101 export suppliers and profiles casual wear, formal wear, sportswear, sleepwear, underwear, and baby and children’s wear. It also features industry information, new product features, price guides and export data. PDFs of each section are available to download for free online.
Free trade agreements help draw foreign direct investment, support supply chain efficiencies
Vietnam’s garment and textiles industry consists of over 6,000 companies. Suppliers benefit from free trade agreements that the country has signed, reducing barriers to importing raw materials and entering overseas markets. The industry’s exports reached $22.8 billion in 2015, up 9 percent from $20.9 billion in 2014.
Among the free trade agreements in effect are the ASEAN Free Trade Area (AFTA), the ASEAN-Australia and New Zealand FTA (AANZFTA) and the ASEAN-India Comprehensive Economic Cooperation Agreement (ASEAN-India CECA). These trade deals, as well as those that are currently under negotiation, have also encouraged local and foreign investment in various stages of the garment and textiles supply chain.
Foreign direct investment into Vietnam rose 12.5 percent year on year in 2015 to $22.8 billion, of which about $2 billion went into the garment and textile sectors.
Several garment makers are working closely with domestic yarn providers to develop local supplies to reduce the dependency on imported inputs. This will also increase the local content of their products to meet the free trade agreements’ rules of origin. A few makers are investing in facilities to produce their own yarn or fabric.
This trend will boost the production efficiency of the industry and help provide buyers with quality garments that are more price competitive.
Some suppliers expect prices to increase 5 to 10 percent in the next 12 months to cover higher wages. Vietnam’s National Wage Council recently announced an average increase of 7.3 percent in monthly minimum wages across the country. Starting in January 2017, workers must receive a minimum compensation of approximately $116 to $166, depending on the area.
Vietnam Sourcing Report: Garments 2016 is one of a series of online Sourcing Reports covering emerging Asia supply markets. A full version of the report can be viewed online here.
Sourcing from Vietnam buyer’s guide
To help buyers new to Vietnam sourcing, the Hinrich Foundation has prepared a guide that provides an overview of the industries and products available.
Buyers will also learn how to find and evaluate reliable suppliers, available banking options, common methods of payment, shipping details and steps to avoid or settle trade disputes at Developing Country Sourcing.