Currently, the textile and garment industry in Vietnam ranks third in the list of Vietnam’s major export industries, following only electronics and seafood products. The production and export of textiles and garments have made a significant contribution to diversifying the revenue sources and trade balance of Vietnam. The textile and garment industry has been contributing significantly to Vietnam’s GDP, accounting for approximately 10% in recent years.
On September 10, 2023, during the state visit of U.S. President Joe Biden to Vietnam, the leaders of both countries agreed to upgrade the Vietnam-U.S. relationship from a “Comprehensive Partner” to a “Comprehensive Strategic Partner.” Many economic sectors are expected to benefit greatly from this upgrade, including the textile and garment industry with the large market being the United States.
For several years, the United States has consistently been Vietnam’s top important trading partner and the largest export market, accounting for nearly 30% of Vietnam’s total export turnover to the world. In 2022, Vietnam became the 8th largest trading partner of the United States. Last year, Vietnam’s textile and garment exports to the United States recorded an impressive growth of approximately $17.8 billion.
Positive aspects of the U.S.-Vietnam economic relationship in the textile and garment sector include:
- Customs between the two countries have been improved, leading to reduced tariffs.
- The U.S.-Vietnam Free Trade Agreement (EVFTA) was signed and took effect in 2020, opening up new opportunities for the Vietnamese textile and garment industry to access the U.S. market.
- Vibrant negotiations and cooperation in trade, investment, and technology between the two countries.
- Vietnamese textile and garment products have been widely exported to the U.S. and are favored by many famous fashion brands in the U.S.
- Most of the major U.S. textile and garment companies have established production facilities and partnerships with Vietnamese counterparts.
With these developments, as of September 2023, Vietnam has built and upgraded comprehensive strategic partnerships with five countries (China, Russia, India, South Korea, and the United States), with the latest being the United States. This will bring specific benefits to the textile and garment sector, such as:
- Textile and garment exports are expected to continue to recover with positive export growth in 2023.
- Collaboration with U.S. enterprises will bring significant benefits in terms of technology and management to the Vietnamese textile and garment industry.
- The partnership with the United States will facilitate easier access to the U.S. market for the Vietnamese textile and garment industry.
- Agreements like EVFTA, along with other trade agreements, will help reduce tariffs and trade barriers, making Vietnamese textile and garment products more competitive in the U.S. market.
- U.S. fashion brands will promote design and production in Vietnam, creating opportunities for high-value-added exports of Vietnamese textile and garment products to the international market.
- Providing opportunities for Vietnamese enterprises to learn and apply international standards for sustainability and social responsibility.
- The textile and garment industry will be exposed to new trends and requirements, especially in terms of pricing, quality, environmental protection, and sustainable development, including “green production” standards and “clean and sustainable” supply chains.
With the visit of U.S. President Joe Biden to Vietnam on September 10, 2023, Vietnam has elevated the importance of the comprehensive strategic partnership between the United States and Vietnam for the Vietnamese textile and garment industry and other sectors
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