The garment manufacturing industry has existed in Vietnam for at least a century, as the traditional handicraft activities such as the embroidery have existed for a long time. The Vietnam history states that many of the country’s dynasties have to tribute a variety of valuable fabrics made by the country to China. Now, in the country, some traditional villages including the Van PHUC (HATAYProvince), TREIUKHUC (Hanoi), and the MEOVillage (the Thai BINH province) are still working and flourishing in manufacturing the garments for their country. It is stated that the industry development history was started when the Nam DINH Textile Company began working in the year 1879, but since then, the country has been under lots of ups and down for the garments manufacturing industry.

Before we declare a final choice for taking or not taking start of the garment manufacturing in the country, let us have looks on the major ups and downs in this country which relate to the topic. After the liberation in the North in year 1954, many garments and textile industries were re-established in the country which turns to be a really positive sign for start of an industry like the garments manufacturing in Vietnam. By the mid of 1980’s, the Vietnam’s macroeconomics fundamentals turned to be imbalanced as the production was falling into the inefficiency. The country’s finance became a victim of inflation, and the country was depending on the foreign aids.

Thanks to the economic reforms in the country and the movements of the labor-based industries from the developed to the under developed and less developed countries, the new stage of development was brought in the country.

Current Situation in the Garment Industry in Vietnam

First, the industry is achieving notable success in the country. Second, the rate of growth is relatively high in Vietnam. Third, the export of garments has recently found niches in the export market by achieving over the second position, which was used to be captured by the rice and marine products. Moreover, the industry now generates about 20% of the total merchandise exports and 41% of the manufacturing exports along with the textile industry.

Rapid and stable growth of the industry in Vietnam

In the current years, the rate of growth of the industry seems higher but not high enough if we take the year 1990 as the basic one. In 1997, the garments industry production increased by about 127%, while the total industry production was increasing at the 132.1%. The garments industry increased rapidly, at the rate of 346.5%. Although the industry is growing at a rapid rate, it is still behind the textile industry which holds 6.1% of the total, while the garments industry takes about 2.7% of the total industry.

Country’s Top Garments Products

The country is exporting a variety of the garments products including the underwear for men and women, sleepwear, pillow covers, blankets, shirts, trousers, skirts, sweaters, jeans, the fashion wear, military uniforms, and work clothes. These products are getting higher ranks among the export industry, so the garments manufacturing is rapidly increasing for these products.

Country Issues

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When it comes to the country issues of the Vietnam, population issue is the most critical. The present population is around 80 million. Population climbed rapidly after the end of the war. It causes an increase in the population density that leads the county to worsening policies. Nowadays the policy is implemented to have a limited family with no more than two children.           Poverty is another issue of Vietnam’s population. About three quarters of the population were in this curse in the mid 1980s. Systematic strategy of the government in nineties improved the situation, but 29% of the people are still facing the poverty line. Pollution, health, and traditions of sexual harassment are causing real problems for the people of Vietnam.

Labor Cost

Inflation is continued to soar in Vietnam over the years, it increased from15 to 17%. Increase in petrol and power prices was recorded last year. The consumer price index rose with a rate of 12.24% in February 2011 that was the highest increase in past two years. Government adjusts its minimum wages yearly and currently Vietnam is expected to increase the minimum wage like the neighboring country.  Minimum pay ranges from 830,000 to 1.5 million VND. Pay depends on the location of the employee. The density of the employees is higher while the average salary of Vietnam’s workers is lower than Chinese workers in neighborhood. Industries can benefit from the energy that these low cost labors comprise, but average human resource is not qualified for the sophisticated jobs in the country.  High-tech industries are required to do a brief research before establishing an industry in Vietnam because of this issue.

Economy of the Vietnam

The economy of the country is rapidly growing since mid 1980s. Highly centralized planned economy has been shifted to social-oriented market economy which uses both indicative and directive planning. As a part of the globalization, Vietnam is integrating into the World’s economy. Vietnam is rising as a leading agricultural exporting country and an attractive destination for the foreign investment in South-east Asia. In 2010, its GDP reached $104.6 billion with per capita GDP of $1218.

Let’s source in Vietnam:

There are multiple reasons for choosing the Vietnam for sourcing in the garments manufacturing. First, the industry itself is growing at a rapid rate. Second, the country is taking a major part in the exports, and the garment industry is shining in the country’s exports profiles. Third, the country has been a stable place for investment as the government is taking solid steps which are turning to be the best tools for construction of the country. Moreover, the country has the lowest labor costs compared to the any other country of the world including China, which is on the top ranks among the lowest labor costs. Finally, the country’s economy is becoming stronger and stronger with the passage of time.


Vietnam has gone through ups and downs, but the garments industry has been flourishing even during the country crises. The garment industry is growing rapidly in the country, as it reached 346.5% rate of flourishing. It makes up about 2.7% of the country exports which is a good sign for the garment industry. The country has the lowest labor cost which is lower than in China. Country’s economy is consistently moving to the peak value. Now all this turns to be an impressive sign for the local and foreign investors who put money in garment industry.

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