Vietnam Textile and Garment Comprehensive Report Q3/2016
World textile & garment (T&G) industry is greatly affected by economic conditions. After a decline in 2009 due to the global economic crisis, the textile & garment industry is on the rebound and expected to grow continuously at a rate of 6% in the coming years.
China, the United State, Germany and Japan are the four largest apparel T&G markets. Large T&G market size in developing countries is mainly contributed by their large population. Expenditure per capita spent on garment shows disparity between the developed and developing countries.
Textile and garment industry is one of the leading sectors of Vietnam. According to the Vietnam Textile and Apparel Association, by the end of 2014, Vietnam had 5,214 textile & garment companies, a majority of them are in medium or small size. Workforce in T&G sector accounts for over 20% of employment in the industrial sector and nearly 5% of the total national workforce.
Vietnam is among the top 5 T&G exporters in the world with market share of 3.1% in 2014. The United States, EU, Japan, and Korea are our main export markets.
Currently, Vietnam mainly operates in sewing, which creates the lowest added value and exports processed clothes, thus the value added is very limited. Vietnam's garment sector is still dependent on raw materials (70-80%) imported mainly from China, Taiwan and Korea.
Domestic T&G market is relatively small, only around USD 3 billion with the low expenditure on T&G per capita. Vietnamese companies face severe competition from foreign brands, counterfeits and illegally imported clothes. Domestic enterprises are yet to focus on skill and knowledge-intensive stages of production, for example: distributing, exporting, designing, and branding. Viet Tien, Nha Be, May 10,… are a few successful enterprises in brand building and marketing.
The Free Trade Agreement, especially VKFTA, EVFTA and TPP, can open up many export opportunities for T&G sector. Some optimistic forecasts state that Vietnam could strive to USD 50-55 billion by 2025.
The industry made up of SMEs with low financial strengths and competitiveness will face challenges in the open economy. However, in the long run the FTAs will drive the industry to move to higher stages in the value chain, deeply integrate into global economy.
China, the United State, Germany and Japan are the four largest apparel T&G markets. Large T&G market size in developing countries is mainly contributed by their large population. Expenditure per capita spent on garment shows disparity between the developed and developing countries.
Textile and garment industry is one of the leading sectors of Vietnam. According to the Vietnam Textile and Apparel Association, by the end of 2014, Vietnam had 5,214 textile & garment companies, a majority of them are in medium or small size. Workforce in T&G sector accounts for over 20% of employment in the industrial sector and nearly 5% of the total national workforce.
Vietnam is among the top 5 T&G exporters in the world with market share of 3.1% in 2014. The United States, EU, Japan, and Korea are our main export markets.
Currently, Vietnam mainly operates in sewing, which creates the lowest added value and exports processed clothes, thus the value added is very limited. Vietnam's garment sector is still dependent on raw materials (70-80%) imported mainly from China, Taiwan and Korea.
Domestic T&G market is relatively small, only around USD 3 billion with the low expenditure on T&G per capita. Vietnamese companies face severe competition from foreign brands, counterfeits and illegally imported clothes. Domestic enterprises are yet to focus on skill and knowledge-intensive stages of production, for example: distributing, exporting, designing, and branding. Viet Tien, Nha Be, May 10,… are a few successful enterprises in brand building and marketing.
The Free Trade Agreement, especially VKFTA, EVFTA and TPP, can open up many export opportunities for T&G sector. Some optimistic forecasts state that Vietnam could strive to USD 50-55 billion by 2025.
The industry made up of SMEs with low financial strengths and competitiveness will face challenges in the open economy. However, in the long run the FTAs will drive the industry to move to higher stages in the value chain, deeply integrate into global economy.
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
Figure 1. GDP growth rate by quarters
Figure 2. Vietnam's GDP per capita 2010 - 2016E
Figure 3. Vietnam’s import value
Figure 4. Vietnam’s export value
Figure 5. Main export products to China, H1/2016
Figure 6. Main products imported from China, H1/2016
Figure 7. VND/CNY exchange rate
Figure 8. VND/USD exchange rate
Table 1. Oil refine projects currently built in VN
Figure 9. Vietnam's retail sales
Table 2. Top retailers in Vietnam market
1.2 . Government Policies Relating to the industry
Table 3. Vietnam’s import tariff before and after WTO
1.3 Foreign Trade Agreements
1.4 Trans-Pacific Partnership Agreement
Figure 10. Textile imports and exports among 12 TPP countries
Figure 11. Vietnam’s imports and exports with other 11 TPP countries in 2014
Figure 12. Main T&G import markets of the US in 2015
Figure 13. Average textile import tax of TPP countries
Table 4. Estimated effects of TPP on Vietnam’s T&G industry 2020
Figure 14. Vietnam’s yarn import by countries in 2014
Figure 15. Vietnam’s fabric import by countries in 2014
Table 5. Vietnam import from TPP in 2015
Table 6. Estimated effects of TPP on Vietnam’S T&G industry (with and without ROO) in 2020
Figure 16. Forecast of Vietnam’s textile import after TPP
Table 7. FDI in textile industry in 2014 and first 5 months of 2015
Figure 17. FDI structure in textile industry in 2014 – May 2015
Table 8. FDI projects in H1/2016
Figure 18. Impacts of TPP on textile export to the US
Figure 19. VINATEX’s investment structure in 2015
2. INDUSTRY OVERVIEWS
2.1 Global Textile and Garment Industry
2.1.1 Global Textile and Garment Value Chain
2.1.2 Raw materials
Figure 20. World’s cotton price
Figure 21. MEG price movements
Figure 22. Price movement index of Synthetic fiber, raw materials and oil up to 4/2016
Figure 23. PTA price movements
Figure 24. World’s monthly cotton production
Figure 25. World’s monthly cotton consumption
Figure 26. Cotton yield by countries
Figure 27. Impact of China’s policies on cotton price
Figure 28.World’s cotton export 11/12-14/15
Figure 29.World’s cotton import 11/12-14/15
2.1.3 Spinning
Figure 30. Global yarn production and consumption
Figure 31. Fibers and oil price movement index up to 4/2016
Figure 32. Fiber applications of the world in 2014
Figure 33. World's top 10 largest fibers exporters, 2015
Figure 34. World's top 10 largest textiles importers 2015
2.1.4 Weaving, dyeing and finishing
Figure 35. Global yarn and fabric production index Q3/2013 – Q1/2016
Figure 36. World fabric trade in 2010-2014
2.1.5 Sewing
Figure 37. Global textile and apparel market size
Figure 38. Global Textile and Apparel trade
Figure 39. Top 10 largest apparel exporters, 2015
Figure 40. Top 10 largest apparel importers, 2015
Figure 41. Global T&A trade breakdown
Figure 42. Global apparel trade
Figure 43. Apparel market size by countries
Figure 44. Spending on apparel per capita
Figure 45. Average wage in textile sector 2014
Figure 46. Minimum wage 2016
2.1.6 Distribution and export
Figure 48. World’s apparel retail revenue 2014-2019
2.1.7 Textile Machine Industry
Figure 49. 10 biggest textile machinery importers
Figure 50. 10 biggest textile machinery exporters
Table 9. World’s largest textile machinery manufacturers
2.2 Vietnam’s Textile and Garment Industry
2.2.1 Overview
Table 10. General Information of Vietnam’s T&G industry
Table 11. Textile and garment enterprises of Vietnam
Figure 51. Geographical distribution of textile businesses
2. 2.2. RAW MATERIALS
Figure 52. Vietnam cotton production and crop area
Figure 53. Cotton area in some major regions
Table 12. Vietnam’s cotton area
Figure 54. Vietnam’s cotton consumption 10/11-14/15
Figure 55. Vietnam’s cotton import, 2010 – H1/2016
Figure 56. Average cotton import price
Figure 57. Vietnam cotton import by countries in H1 2016
2. 2.3. SPINNING
Figure 58. Fiber production in 2010-2014
Figure 59. Fiber consumption volume and value in 2010-2014
Figure 60. Vietnam fiber and yarn exports
Figure 61. Yarn and fiber export value by countries H1/2016
Figure 62. Number of spindles, rotors of Vietnam
Figure 63. Vietnam’s synthetic fibers companies
Table. 13. Some spinning projects in Vietnam, 2014 – 2016
2. 2.4. WEAVING, DYING AND FINISHING
Figure 64. Vietnam’s fabric production during 2010-7M/2015
Figure 65. Vietnam fabric consumption
Figure 66. Vietnam fabric production by inputs
Figure 67. Fabric import by countries/regions
Figure 68. Vietnam fabric export and import
Table 14. Selected Textile Dyeing Wastewater indicators
2. 2.5. SEWING
Figure 69. Apparel production
Figure 70. Domestic apparel market share
Figure 71. Vietnam apparel export
Figure 72. Apparel exports of FDI and domestic businesses
Figure 73. Apparel export structure in 2014
Table 16. Shipment/delivery periods of selected countries
Figure 74. Inventory indexes of textile and apparel industry
2. 2.6. DISTRIBUTION AND EXPORT
3. INDUSTRY’S POTENTIAL AND RISK ANALYSIS
3.1 Risk analysis
3.1.1 Five Forces Analysis
3. 1.2. SWOT ANALYSIS
3. 1.3. RISK ANALYSIS
3. 2. POTENTIAL ANALYSIS
3. 2.1. INDUSTRY’S DEVELOPMENT PLAN
Table 17. Some criteria of T&G industry’s development plan
3.2.2. Forecast and potential assessment
Figure 75. Vietnam T&G export turnover forecast
4. INDUSTRY’S KEY PLAYERS
4.1. Key players in Garment Industry
Table 18. Top 8 enterprises with the highest Total asset value of Vietnamese textile industry
Table 19. Production capacity of Viet Tien Garment Corporation
Figure 76. Export market of Viet Tien in 2014
Figure 77. Export turnover of Nha Be
Table 20. The production capacity of NHABE Garment Corporation
Figure 78. Export market of Nha Be in 2014
Table 21. Production capacity of Hoa Tho Corp
Figure 79.Export market of Hoa Tho in 2014
Figure 80. Export turnover of Song Hong
Table 22. Production capacity of Song Hong Garment JSC
Figure 81. Export market of Song Hong in 2014
Table 23. Production capacity of Garment 10 Corporation - JSC
Table 24. Production capacity of Duc Giang JSC
Figure 82. Export market of Duc Giang in 2014
Table 25. Production capacity of TNG
Figure 83. Export market of TNG in 2014
Figure 84. Export market of Dong Nai in 2014
Figure 85. Net revenue 2014 – 2015
Figure 86. Gross profit and gross profit margin, 2015
Figure 87. Net profit and net profit margin 2015
Figure 88. Financial expenses 2015
Figure 89. Selling expense 2015
Figure 90. General and administrative expenses 2015
Figure 91. Asset structure
Figure 92. Capital source structure 2013 – 2014
Figure 93. Account Receivables
Figure 94. Inventories
Table 26. Liquidity and Profitability of nine selected garment enterprises
4. 2. KEY PLAYERS IN TEXTILE INDUSTRY
Table 27. Top 05 textile enterprises of Vietnam with largest net revenue in 2015
Table 28. Production capacity of Phong Phu Corporation
Figure 95. Export market of Phong Phu in 2014
Table 29. Yarn quality of Thanh Cong Textile Garment Investment Trading JSC
Figure 96. Export market of TCG in 2014
Table 30. Production capacity of Thanh Cong Textile Garment Investment Trading JSC
Figure 97. Consumption market of Century
Figure 98. Production of Century
Table 31. Production capacity of Hue Textile Garment JSC
Figure 99. Net revenue
Figure 100.Gross profit
Figure 101. After-tax profit
Figure 102. Financial expenses
Figure 103. Selling expenses
Figure 104. General and administrative expense
Figure 105. Asset structure
Figure 106. Liabilities structure
Figure 107. Account receivables
Figure 108. Inventories
Table 32. Liquidity and Profitability of five selected textile enterprises
5. CONCLUSION
Appendix
Table 33. Top largest Garment Exporters in 2014
1.1 Macroeconomic situation
Figure 1. GDP growth rate by quarters
Figure 2. Vietnam's GDP per capita 2010 - 2016E
Figure 3. Vietnam’s import value
Figure 4. Vietnam’s export value
Figure 5. Main export products to China, H1/2016
Figure 6. Main products imported from China, H1/2016
Figure 7. VND/CNY exchange rate
Figure 8. VND/USD exchange rate
Table 1. Oil refine projects currently built in VN
Figure 9. Vietnam's retail sales
Table 2. Top retailers in Vietnam market
1.2 . Government Policies Relating to the industry
Table 3. Vietnam’s import tariff before and after WTO
1.3 Foreign Trade Agreements
1.4 Trans-Pacific Partnership Agreement
Figure 10. Textile imports and exports among 12 TPP countries
Figure 11. Vietnam’s imports and exports with other 11 TPP countries in 2014
Figure 12. Main T&G import markets of the US in 2015
Figure 13. Average textile import tax of TPP countries
Table 4. Estimated effects of TPP on Vietnam’s T&G industry 2020
Figure 14. Vietnam’s yarn import by countries in 2014
Figure 15. Vietnam’s fabric import by countries in 2014
Table 5. Vietnam import from TPP in 2015
Table 6. Estimated effects of TPP on Vietnam’S T&G industry (with and without ROO) in 2020
Figure 16. Forecast of Vietnam’s textile import after TPP
Table 7. FDI in textile industry in 2014 and first 5 months of 2015
Figure 17. FDI structure in textile industry in 2014 – May 2015
Table 8. FDI projects in H1/2016
Figure 18. Impacts of TPP on textile export to the US
Figure 19. VINATEX’s investment structure in 2015
2. INDUSTRY OVERVIEWS
2.1 Global Textile and Garment Industry
2.1.1 Global Textile and Garment Value Chain
2.1.2 Raw materials
Figure 20. World’s cotton price
Figure 21. MEG price movements
Figure 22. Price movement index of Synthetic fiber, raw materials and oil up to 4/2016
Figure 23. PTA price movements
Figure 24. World’s monthly cotton production
Figure 25. World’s monthly cotton consumption
Figure 26. Cotton yield by countries
Figure 27. Impact of China’s policies on cotton price
Figure 28.World’s cotton export 11/12-14/15
Figure 29.World’s cotton import 11/12-14/15
2.1.3 Spinning
Figure 30. Global yarn production and consumption
Figure 31. Fibers and oil price movement index up to 4/2016
Figure 32. Fiber applications of the world in 2014
Figure 33. World's top 10 largest fibers exporters, 2015
Figure 34. World's top 10 largest textiles importers 2015
2.1.4 Weaving, dyeing and finishing
Figure 35. Global yarn and fabric production index Q3/2013 – Q1/2016
Figure 36. World fabric trade in 2010-2014
2.1.5 Sewing
Figure 37. Global textile and apparel market size
Figure 38. Global Textile and Apparel trade
Figure 39. Top 10 largest apparel exporters, 2015
Figure 40. Top 10 largest apparel importers, 2015
Figure 41. Global T&A trade breakdown
Figure 42. Global apparel trade
Figure 43. Apparel market size by countries
Figure 44. Spending on apparel per capita
Figure 45. Average wage in textile sector 2014
Figure 46. Minimum wage 2016
2.1.6 Distribution and export
Figure 48. World’s apparel retail revenue 2014-2019
2.1.7 Textile Machine Industry
Figure 49. 10 biggest textile machinery importers
Figure 50. 10 biggest textile machinery exporters
Table 9. World’s largest textile machinery manufacturers
2.2 Vietnam’s Textile and Garment Industry
2.2.1 Overview
Table 10. General Information of Vietnam’s T&G industry
Table 11. Textile and garment enterprises of Vietnam
Figure 51. Geographical distribution of textile businesses
2. 2.2. RAW MATERIALS
Figure 52. Vietnam cotton production and crop area
Figure 53. Cotton area in some major regions
Table 12. Vietnam’s cotton area
Figure 54. Vietnam’s cotton consumption 10/11-14/15
Figure 55. Vietnam’s cotton import, 2010 – H1/2016
Figure 56. Average cotton import price
Figure 57. Vietnam cotton import by countries in H1 2016
2. 2.3. SPINNING
Figure 58. Fiber production in 2010-2014
Figure 59. Fiber consumption volume and value in 2010-2014
Figure 60. Vietnam fiber and yarn exports
Figure 61. Yarn and fiber export value by countries H1/2016
Figure 62. Number of spindles, rotors of Vietnam
Figure 63. Vietnam’s synthetic fibers companies
Table. 13. Some spinning projects in Vietnam, 2014 – 2016
2. 2.4. WEAVING, DYING AND FINISHING
Figure 64. Vietnam’s fabric production during 2010-7M/2015
Figure 65. Vietnam fabric consumption
Figure 66. Vietnam fabric production by inputs
Figure 67. Fabric import by countries/regions
Figure 68. Vietnam fabric export and import
Table 14. Selected Textile Dyeing Wastewater indicators
2. 2.5. SEWING
Figure 69. Apparel production
Figure 70. Domestic apparel market share
Figure 71. Vietnam apparel export
Figure 72. Apparel exports of FDI and domestic businesses
Figure 73. Apparel export structure in 2014
Table 16. Shipment/delivery periods of selected countries
Figure 74. Inventory indexes of textile and apparel industry
2. 2.6. DISTRIBUTION AND EXPORT
3. INDUSTRY’S POTENTIAL AND RISK ANALYSIS
3.1 Risk analysis
3.1.1 Five Forces Analysis
3. 1.2. SWOT ANALYSIS
3. 1.3. RISK ANALYSIS
3. 2. POTENTIAL ANALYSIS
3. 2.1. INDUSTRY’S DEVELOPMENT PLAN
Table 17. Some criteria of T&G industry’s development plan
3.2.2. Forecast and potential assessment
Figure 75. Vietnam T&G export turnover forecast
4. INDUSTRY’S KEY PLAYERS
4.1. Key players in Garment Industry
Table 18. Top 8 enterprises with the highest Total asset value of Vietnamese textile industry
Table 19. Production capacity of Viet Tien Garment Corporation
Figure 76. Export market of Viet Tien in 2014
Figure 77. Export turnover of Nha Be
Table 20. The production capacity of NHABE Garment Corporation
Figure 78. Export market of Nha Be in 2014
Table 21. Production capacity of Hoa Tho Corp
Figure 79.Export market of Hoa Tho in 2014
Figure 80. Export turnover of Song Hong
Table 22. Production capacity of Song Hong Garment JSC
Figure 81. Export market of Song Hong in 2014
Table 23. Production capacity of Garment 10 Corporation - JSC
Table 24. Production capacity of Duc Giang JSC
Figure 82. Export market of Duc Giang in 2014
Table 25. Production capacity of TNG
Figure 83. Export market of TNG in 2014
Figure 84. Export market of Dong Nai in 2014
Figure 85. Net revenue 2014 – 2015
Figure 86. Gross profit and gross profit margin, 2015
Figure 87. Net profit and net profit margin 2015
Figure 88. Financial expenses 2015
Figure 89. Selling expense 2015
Figure 90. General and administrative expenses 2015
Figure 91. Asset structure
Figure 92. Capital source structure 2013 – 2014
Figure 93. Account Receivables
Figure 94. Inventories
Table 26. Liquidity and Profitability of nine selected garment enterprises
4. 2. KEY PLAYERS IN TEXTILE INDUSTRY
Table 27. Top 05 textile enterprises of Vietnam with largest net revenue in 2015
Table 28. Production capacity of Phong Phu Corporation
Figure 95. Export market of Phong Phu in 2014
Table 29. Yarn quality of Thanh Cong Textile Garment Investment Trading JSC
Figure 96. Export market of TCG in 2014
Table 30. Production capacity of Thanh Cong Textile Garment Investment Trading JSC
Figure 97. Consumption market of Century
Figure 98. Production of Century
Table 31. Production capacity of Hue Textile Garment JSC
Figure 99. Net revenue
Figure 100.Gross profit
Figure 101. After-tax profit
Figure 102. Financial expenses
Figure 103. Selling expenses
Figure 104. General and administrative expense
Figure 105. Asset structure
Figure 106. Liabilities structure
Figure 107. Account receivables
Figure 108. Inventories
Table 32. Liquidity and Profitability of five selected textile enterprises
5. CONCLUSION
Appendix
Table 33. Top largest Garment Exporters in 2014
