According to the Vietnam Textile and Apparel Association (Vitas) announced and cited the Foreign Investment Agency (Ministry of Planning and Investment), after 3 decades of attracting foreign investment, from 1989 to the end of October 2019, there are 19.3 billion USD of foreign capital has been registered to implement investment projects in Vietnam by FDI enterprises. This result shows Vietnam rapidly becomes a good place that attracts foreign investment in Southeast Asia. Let's take a look at Vietnam's textile and garment industry in recent years as well as Vietnam investment opportunities for foreign investors.
FDI in Vietnam's textile and garment industry in 2019
In the context of integration and the EVFTA Agreement that opens up opportunities only for Vietnamese enterprises and has the advantages of cheap labor, the textile industry in Vietnam will have to compete greatly on a global scale. As a matter of fact, foreign investors have been making investments in Vietnam's textile and apparel market, a list of large enterprises from Europe and the United States have invested in wool spinning projects in Da Lat or textile projects in Binh Dinh, Nam Dinh provinces in recent years.
Top foreign countries invest in Vietnam's textile and garment industry
Statistics from the United Nations Conference on Trade and Development (UNCTAD) show that Vietnam in 2018 attracted FDI capital up to 16 billion USD. In the first 9 months of 2019, MPI announced that foreign investors poured more than the US $ 18.4 billion into projects in Vietnam.
Accordingly, in the first 11 months of 2019, the total foreign direct investment (FDI) in the textile and garment industry reached $1,546 billion USD with 184 projects. In which, 5 countries and territories have the largest investment capital in the textile and apparel industry, respectively: Hong Kong USD 447 million, Singapore USD 370 million, China 270 million USD, South Korea 165 million USD, Seychelles 103 million dollars.
Following are Japanese investors who also registered to invest in Vietnam's textile and apparel industry with a total capital of USD 61 million, the US with USD 19 million, Taiwan with USD 15 million, and nearly USD 100 million of the remaining capital belonging to the other investors.
Top localities attracted FDI into textile, dyeing and sewing industries
The localities receiving large capital in the textile and garment industry, led by Tay Ninh with a total capital of 464 million USD with 16 projects, Quang Nam 10 projects, registered capital of 107 million USD, Nghe An 3 projects with 210 million USD, Thua Thien Hue 2 projects, with 213 million USD ...
Vietnam is still a good "destination" for foreign investors interested in the textile and garment industry. However, the Vietnam labor workforce structure divides into the main urban and rural areas. In general, the labor force is mainly concentrated in rural areas, accounting for nearly 70%. This number tends to decrease over the years but remains high while 80% of these people have not yet received professional training. This feature is a significant problem for foreign businesses in finding employees who have enough skills and knowledge.
Some final words
For foreign investors who want to focus on cheap labor in Vietnam, they need to ask for help from domestic employment services or recruitment consulting and solutions to support them to acquire large staff who have enough quality. In Navigos Search, we help our client businesses in finding their right talent employees as well as consulting services. To meet our professional consultant team, please feel free to get in touch with us by filling the form in the contact page or visit us on floor 20, e.town Central Tower, 11 Doan Van Bo, Ward 12, District 4, Ho Chi Minh.