Vietnam's Garment Industry Stuck at Bottom of Value Chain After Years of Missed Opportunities
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Vietnamese garment businesses like Viet An are stuck at the bottom of the industry value chain, only doing CMT (cut, make, trim) orders. This model has low profit margins.
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Foreign firms account for 60%+ of Vietnam's garment exports but only 24% of the market. They capture most of the profits.
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Vietnam used to have a complete domestic supply chain but gave it up to focus just on garment assembly. It fails to move up the chain.
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The garment industry provides many jobs but is seen as low-tech and polluting. Cities want to replace it with high-tech industries.
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Experts say Vietnam wasted decades failing to upgrade the garment industry. It needs policy support to help businesses invest in technology and workers transition to higher-value work.