Vietnam: Racing towards being the denim leader

Will denim be able to gain its
foothold in Vietnam?

Export of denim apparels from
Vietnam to the US

US $ 173
million
US $ 207.29
million
US $ 248
million
2016 2018(Tentative)2017
19.6% 20%

20.49
million pcs
25.24
million pcs
27
million pcs
2016 2018(Tentative)2017

69.76
135.46
80
155
MB WG
JEANS EXPORTS VALUE OF VIETNAM
(2017 VS 2018)
Export Value in 2017 (in million $) Tentative Export Value in 2018 (in million $)

When the industry is
growing, then
why the struggle...

Produces high-end
garments, like ski jackets,
leather jackets and
outerwear, so the volume
is always less

“The unfortunate part is that
very few have invested in
laundry in Vietnam and most
of them still use outside
laundry,”
– SM Junaid Javed, Executive Chairman, SM Group
Negligible investment in laundry

Expensive labour in Vietnam
In Vietnam, the minimum wage is, on
average, US $ 165 while it is just US $
68 in Bangladesh

Labour moving to fast-
growing electronics
sector and tourism
industry

Yet, the future of
Vietnam looks bright

Top garment exporters
are growing in Vietnam:
Phong Phu International: 18 to 24 million pcs per year
Saitex International: 5 million pcs per year
Nhabe Corporation: 5 million pcs per year

The companies having
their own denim mills:
Prosperity Textiles: 43,891,200 mtrs. annually
TCE Denim: 38,404,800 mtrs. annually
Phong Phu International: 24,000,000 mtrs. annually
Sasha Denim: under consideration

Big players from Taiwan,
Korea and China are
investing – and investing
big – in Vietnam

TCE Denim's latest
project of 30 million
meters per annum kicks
off in Hoa Xa IZ in Nam
Dinh province

Upcoming FTAs between EU
and Vietnam to enhance
investment opportunities

CPTPP will further boost Vietnam’s
economic reforms
32%
increase of
Vietnam
GDP
4%
increase of
export growth
rate
3.8%
increase of
import
growth rate

Denim is improving fast in Vietnam
and what is good is that there is now
more investment on technology and
machinery. So, I am sure Vietnam is
slowly heading towards being the
denim leader
–Jordi Calucho, Technical Marketing Executive, Archroma
“ “

More denim consultants from
Europe need to be associated
with denim factories
More initiatives on saving water
and energy

The progress is slow but Vietnam is
all set to be the denim leader in
the years to come

With a formidable reputation for
excellent needle work and churning out
flawless jackets with any number of
panels, even the most complicated
products with highest number of value
additions are possible in Vietnam
–- Anil Mishra, Country Manager, Asmara Vietnam
“ “

Vietnam is one of the world’s leading
destinations for investors in the textile
& garment industry due to the
bilateral and multilateral agreements
that the country has signed. CPTPP
and FTA are only going to facilitate the
development of the industry
–Nguyen Thi Tuyet Mai, Secretary General, VITAS
“ “

• //contact@apparelresources.com

Vietnam: Racing towards being the denim leader

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