Products in the textile industry
Vietnam’s textile and garment industry has gained international recognition for the high quality and accuracy of its products. From fashion apparel to speciality fabrics, Vietnamese textile products are highly regarded for their durability, variety of designs, and adherence to strict standards. The combination of modern technology and skilled craftsmanship has resulted in beautiful and high-quality products. Many textile factories in Vietnam have received international certifications for quality management, environmental protection, and social responsibility.
In 2023, textile export revenue reached $40.3 billion, making Vietnam one of the top three textile-exporting countries in the world. Vietnamese textile products are exported to more than 180 countries, with the main markets being the United States, the EU, Japan, and South Korea. The United States accounts for 50% of the total export value, followed by the EU with 18%. Vietnam is also expanding its market to ASEAN and emerging markets such as Australia, Canada, and the Middle East. These achievements not only confirm Vietnam’s production capacity but also enhance the position of its textile industry in the international market, making it a reliable source of supply for global partners.
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Total export turnover of garment industry 2022 – 2023
Export value of textile industry
Footwear products
Vietnam is an attractive destination for the footwear industry due to its low production costs and competitive prices, while still maintaining high quality. Currently, Vietnam ranks second globally in footwear exports, accounting for 10% of the global market share. “Made in Vietnam” footwear is exported to 150 markets, with the United States, the EU, China, Japan, and South Korea accounting for 80% of total export value. In 2023, the United States imported more than $7.1 billion worth of footwear from Vietnam, and in the first quarter of 2024, Vietnamese footwear accounted for 45% of the U.S. market share.
Vietnam footwear export quater 1 2024
Overview of Vietnam’s export value of Footwear products
Currently, more than 10% of the world’s population wears shoes produced in Vietnam, especially fabric shoes, where Vietnam leads the world in production value. Vietnam’s footwear industry stands out with its diversity in types and designs, catering to all market segments from budget to high-end. The factories not only manufacture for major brands like Nike, Adidas, and Puma but also develop unique product lines tailored to market needs. The diversity in materials, from genuine leather and woven fabrics to environmentally friendly synthetic materials, along with creative design and customization capabilities, has helped Vietnam’s footwear industry meet global market demands effectively.
Furniture and Home Decor
Vietnam is one of the top five wood-exporting countries globally. In the first quarter of 2024, wood furniture from Vietnam accounted for 40.8% of the total import value in the United States, reaching $2.7 billion. Thanks to tariff reduction commitments from CPTPP, Vietnam has expanded its market share in major markets such as Canada (14.8%) and Japan (22%).
Currently, Vietnam has about 6,000 wood processing and manufacturing enterprises with over 420,000 skilled workers employed in factories, with 55-60% of the workforce being trained and stable. The total demand for raw wood for the wood processing industry in Vietnam is 40 million m³ per year, with sources from concentrated plantations (20.5 million m³), scattered trees, and rubber wood (9.6 million m³), and imported wood (8.5 million m³). All wood sources have legal timber certificates, ensuring traceability according to legal regulations.
Vietnam has also effectively implemented related conventions and agreements, such as CITES, UNCCD, and VPA/FLEGT. As of 2023, Vietnam’s natural and planted forest areas are 10.3 million ha and 4.3 million ha, respectively, with 70% of the forest area being natural and 30% being planted forests. The government is focusing on providing the best wood varieties.
Understand more about the Vietnam’s Timber industry here
Agricultural Products
Vietnam’s agricultural sector is renowned for its diversity, from coffee, cashews, and pepper to tropical fruits like mango, dragon fruit, and bananas. Vietnam is the second-largest coffee exporter in the world and the leading global exporter of cashews, thanks to favourable natural conditions and sustainable farming practices. Vietnamese agricultural products are not only diverse but also highly regarded for their quality, meeting international standards. Vietnam’s agricultural products are very competitively priced in the global market due to low production costs and supportive government policies. Compared to other countries, Vietnam offers agricultural products at reasonable prices while still ensuring superior quality, helping importers optimize costs and increase competitiveness in the global market.
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Vietnam agriculture products
Currently, Vietnam has over 10 groups of products with export values exceeding $1 billion, including fruits, rice, coffee, cashews, pepper, and wood products. Vietnamese agricultural products are now present in 200 countries worldwide, becoming familiar names in demanding markets such as the U.S., EU, and Japan through FTAs and EVFTA agreements.
Electronics and Electrical Products
Vietnam’s electronics and components industry has a strong presence in major markets such as the United States, China, and the EU. Continuous growth in export value highlights the vast potential for sourcing electronics from Vietnam, meeting the diverse demands of international markets.
With significant investment from leading global technology companies like Samsung, Apple, and Intel, the computer, electronic products, and components sectors, along with electrical products and other components, are consistently among Vietnam’s top export groups, maintaining a quarterly scale of $14-16 billion. Although much of the current growth comes from FDI enterprises, the potential for the domestic electronics sector is still vast. Vietnam is focusing on enhancing domestic production capacity, encouraging local businesses to invest in new technologies and improving product quality. This creates significant opportunities for companies looking to tap into this promising market.
Thanks to low labour costs and government support, electronics and components produced in Vietnam are very competitively priced. This allows importers to optimize costs while ensuring product quality, thereby increasing competitiveness in the global market.
Overview Vietnam Phones & Accessories Export Value 2011 – 2023
Vietnam Electronics and Electrical Products
Technology/Software Products
The technology industry in Vietnam is booming with the emergence of many innovative startups in areas such as fintech, e-commerce, AI, and blockchain. These startups are not only meeting domestic demand but also expanding into international markets and developing new products and services such as mobile payment applications and e-commerce platforms. Recognizing the importance of the technology industry, the Vietnamese government has introduced a number of supportive policies, including a high-tech development program through 2030 and tax incentives for new businesses. In addition, startup incubators and venture capital funds are also promoting the rapid and sustainable development of technology startups in Vietnam. Vietnam’s human resource costs for this industry are much lower than the world’s, but the quality is not inferior. Therefore, this is an industry where foreign companies source a lot from Vietnam.
Conclusion
With a rapidly growing economy, skilled workforce, and strategic geographic location, Vietnam is solidifying its position as a leading global sourcing destination. From textiles and footwear to wood products, agricultural goods, and high-tech products, Vietnam offers great opportunities for international businesses. Significant progress in infrastructure development, government support policies, and adherence to international standards have created a favourable and reliable business environment. Sourcing from Vietnam not only helps companies optimize costs but also ensures product quality, contributing to success and sustainable growth in an increasingly competitive global landscape.
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