VNDIRECT assesses the prospect of textile and apparel industry positively, but valuations of stocks are at a reasonable level


The main risks of the textile and apparel industry include increased labor costs and the dyeing process is still the bottleneck of the industry. In addition, the advantage of cheap labor in garment manufacturing may no longer be maintained from 2025 and affect the efficiency of the industry.

VNDIRECT Securities Company has just published a report assessing Vietnam's textile and apparel industry to benefit from the wave of trade integration. According to the report, Vietnam's textile and apparel industry is currently the fastest growing in the world with positive prospects.

Vietnam's textile and apparel export value recorded double growth of 13.1% in the period of 2008-17, far exceeding the global average of 4.9% mainly thanks to cheap labor and participation in many trade agreements. Free Trade (FTA). Diverse export markets help Vietnam reduce its dependence on the US market and ensure a positive prospect for Vietnam's textile and garment industry in the context of saturated US textile market (exports to the US accounted for 38.6% of the total Textile export of Vietnam).