Textile Industry Value Chain

Overview of Textile and Garment Industry in Vietnam

Vietnam's textile and garment industry consists of 3 sub-sectors: up-stream sector (fiber production), mid-stream sector (fabric production and dyeing) and down-stream sector (garment manufacturing). The textile and garment industry uses main materials such as cotton, synthetic fiber, woolen, filament and silk. Initially, sub sectors that produced fibers or fabric were not quality products and these were textile products mainly used for domestic consumption. Although Vietnam has huge potential of cotton production, the local source supplies only less than 2% of the total cotton requirements and the textile industry imports huge cotton from outside. Informal sources mentioned that the local fabric industry supplies about 20% of total input demand by garment sector, the rest 80% is imported from overseas for export oriented garment industries.

Capacity of Textile and Garment Industry as of 2009

  | No. of Firms | No. of Machinery | Annual Capacity |

Spinning | 145 | 3,789,000 spindles | 350,000 tons |

Weaving | 401 | 21,800 | 1,000 million m2 |

Knitting | 105 | 3,800 | 200,000 tons |

Dyeing and Finishing | 94 | 1,109 | 700 million m2 |

Garments | 2424 | 918,700 | 2,400 million units |

Manufacturing Stages

Post Production

Factory Production

Pre-Production

* Cotton/Synthetic Fibres Production: during the last decade, Vietnam has made huge investment in its yarn and fabric production and investment still continues. Capacity as of 2010 of cotton and synthetic fiber production of Vietnam is more than 7,000 tons and 180,000 tons respectively.

* Spinning: the spinning industry has modernised its production lines by using automatically assembling machines and microelectronics chip to control fibre quality. There are 145 spinning mills with around 4 million spindles. Annual production capacity of fiber spinning is 350,000 tons.

* Weaving: the weaving industry was renovated over the...