Thank you! :)
I have been “exploring” the Viet Nam clothes industry since I arrived in 2009. The conclusion that I come to is: the Viet Nam clothes Industry is mature and has a few more years ahead of itself before Vietnam prices itself out of the market like China is doing today.
Based on labor costs, Viet Nam is in the middle. Bangladesh, Pakistan, Cambodia and Laos all have monthly labor costs for sewers less than $80. Vietnam is approaching $200, $220. China is at $250, $300. Consequently the CM prices of a clothing factory in Vietnam are not cheaper than Pakistan, Cambodia, Laos or China. Even though China’s labor is more expensive, China gets cost savings in fabric, trim and accessories.
Vietnam is now starting to develop it’s fabric, trim and accessory markets to be fully vertical and compete in price more effectively. The Viet Nam clothes industry as a whole is maturing and becoming less dependent on China, Korea and Taiwan for fabric and trims. A garment factory Vietnam needs to start developing fabric and trim locally and move their operations out of the city to benefit from cheaper labor costs outside of the big city.
Thanks again for emailing our garment factory Vietnam. We hope you choose to do business with our clothing factory.
Feel free to contact me anytime for advice. Even if you are just coming here for fun.
I have been “exploring” the Viet Nam clothes industry since I arrived in 2009. The conclusion that I come to is: the Viet Nam clothes Industry is mature and has a few more years ahead of itself before Vietnam prices itself out of the market like China is doing today.
Based on labor costs, Viet Nam is in the middle. Bangladesh, Pakistan, Cambodia and Laos all have monthly labor costs for sewers less than $80. Vietnam is approaching $200, $220. China is at $250, $300. Consequently the CM prices of a clothing factory in Vietnam are not cheaper than Pakistan, Cambodia, Laos or China. Even though China’s labor is more expensive, China gets cost savings in fabric, trim and accessories.
Vietnam is now starting to develop it’s fabric, trim and accessory markets to be fully vertical and compete in price more effectively. The Viet Nam clothes industry as a whole is maturing and becoming less dependent on China, Korea and Taiwan for fabric and trims. A garment factory Vietnam needs to start developing fabric and trim locally and move their operations out of the city to benefit from cheaper labor costs outside of the big city.
Thanks again for emailing our garment factory Vietnam. We hope you choose to do business with our clothing factory.
Feel free to contact me anytime for advice. Even if you are just coming here for fun.