Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association

How has the textile industry applied sustainable development, sir?

At the end of 2022, the Prime Minister approved the "Development Strategy of Vietnam's Textile and Footwear Industry to 2030, with a vision to 2035". The strategy aims at sustainable development of Vietnam's textile and garment industry.

To achieve this goal, the industry focuses on three main directions. The first is to train human resources capable of adapting to technological changes and development requirements.

The second is to develop environmentally friendly product lines, including recycled products and products using renewable materials, to meet the requirements of the international market.

Third is to promote the development of sustainable fashion, focusing on consumer safety globally.

The textile and garment industry is in the context of integration of new generation Free Trade Agreements (FTAs). Could you please tell us, in your role, what has the Vietnam Textile and Apparel Association done to improve efficiency in accessing and implementing FTAs?

The association has always played an important role in connecting and linking the supply chain. Firstly, we promote the ability to adapt to the requirements of developing enterprises in the connection process. This is not only limited to established enterprises but also includes new enterprises, helping enterprises to learn and join the value chain, thereby drawing lessons for success.

In implementing the Development Strategy for the Vietnamese textile and garment industry, the Association also aims to diversify markets and customers. In the context of many countries in the world reducing production, Vietnam still maintains its growth momentum. Specifically, in the first 9 months of 2024, the textile and garment industry grew by more than 7% compared to the same period in 2023.

The next direction that the Association is pursuing is to promote the application of modern technologies such as automation, robotization and artificial intelligence (AI) in production. In particular, we focus on sustainable development, greening the textile industry, from energy saving to using renewable energy. These steps not only help the Vietnamese textile industry adapt to international policies but also affirm our competitive position in the global market.

In the context of political turmoil in Bangladesh, how do you assess the opportunities and challenges for Vietnam's textile and garment industry?

I can confirm that the political turmoil in Bangladesh and the reduction of orders from this country have not had much impact on the Vietnamese textile market. In fact, the market shares and product lines of the two countries are completely different. Bangladesh focuses on mid- and low-end product lines while Vietnam produces products with medium and higher added value. Moreover, labor costs in Vietnam are also significantly higher, with an average salary of about USD 400/person/month, compared to about USD 145 person/month in Bangladesh.

Although Bangladesh has its own advantages thanks to preferential tariff mechanisms from the US, EU and some other countries, Vietnam participates in many FTAs, helping us to be more transparent and penetrate the global market more clearly. This also puts us under greater competitive pressure but is also an opportunity for the Vietnamese textile and garment industry to develop sustainably and long-term.

How do you assess the export growth prospects of Vietnam's textile and garment industry in 2024?

As I have shared, in the first 9 months of 2024, the textile and garment industry achieved an export turnover of USD 32.4 billion, an increase of 6-7% over the same period last year. With the current growth momentum, we expect the total export turnover of the Vietnamese textile and garment industry to reach USD 43 to USD 44 billion by the end of 2024. This is a very positive figure, affirming the continuous efforts of businesses and timely support from the Government and relevant agencies.