Advantages when produce clothing in Vietnam
There are quite a few advantages of choosing a Vietnam manufacturer's clothing, which include trade agreements with several countries, fast turnaround time, and high-quality products for reasonable prices. A detailed discussion of these aspects follows –
1. Vietnam has, to date, maintained reasonable pricing for the goods it manufactures without compromising on quality. The quality of finished products manufactured in Vietnam is among the top 10% in the world.
2. The country has one of the world’s highest Speed to Market rates in the clothing and fashion industry. Also known as Make to Market rate, Speed to market rate is a measure of the pace at which clothing items go from beginning to be manufactured to being displayed in stores, ready to be sold. Vietnamese manufacturers’ consistently high turnaround times have made the country the destination of big brands like Marks and Spencer, Mango, Gap, and Nike.
3. The government and various textile manufacturers’ associations organize several business-to-business exhibitions and international shows, which gives suppliers and producers a platform to meet clients and showcase their products. In turn, it provides companies with a variety of options to identify makers who can cater to their specific requirements.
4. The country also enjoys a stable socio-political and economic environment, making it a favorable destination for investments that ensure long-term returns. It also enjoys a stable environment for supporting associated industries and agricultural activities to boost production. The country grows a sizeable quantity of cotton, harvests mulberry, raises silkworms, produces preliminary and artificial fibers, etc.
5. It has a steadily available flow of cheap labor, which considerably reduces production costs compared to its competitors.
6. Vietnam also enjoys stable and healthy trade relations with most economies around the globe via beneficial trade agreements. As part of the Association of Southeast Asian Nations (ASEAN), it enjoys free trade agreements with all Southeast Asian countries and India, Japan, Australia, and South Korea. It also enjoys flexible and beneficial trade ties with the USA, which are just short of a free trade agreement.
7. Talks are also underway about two more key trade arrangements which will give Vietnam’s manufacturing sector a well-deserved push –
a. EU-Vietnam Free Trade Agreement (EVFTA) – Discussed in 2015, this bilateral trade agreement is expected to come into force by the end of 2020, permitting Vietnamese and European businesses to trade freely, besides letting European investors and firms set up manufacturing units sans restrictions in Vietnam.
b. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – This trade arrangement will let Vietnam conduct exports to and receive foreign direct investments from 13 countries, including Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, and Singapore. If all goes as planned, this arrangement will spur a massive inflow of funds into the Vietnamese economy, strengthening its manufacturing capabilities further.
Source: https://www.globenewswire.com/
