Recent free trade agreements (FTAs) have made Vietnam attractive to foreign textile and garment businesses. But the trade deals have environmental barriers with higher green standards, which require enterprises to improve not only product quality but also production processes, according to the Vietnam Textile and Apparel Association (VITAS). A failure to meet these challenges could see orders cancelled or stopped, especially from major international brands, VITAS feels. As most Vietnamese textile and apparel enterprises do outsourcing and thus rely heavily on orders from other countries, experts say to maximize the benefits from the FTAs, the country should pay attention to developing the weaving and supporting industries to reduce dependence on imported feedstock, according to a Vietnamese newspaper report. Due to rise in capital flow into the industry, the country has created a comprehensive supply chain in the sector and the upcoming FTAs are also expected to benefit the industry. Herberton from Singapore recently invested in a textile and garment plant in Nam province. The $80-million plant will have a capacity of 25,000 tonnes of yarn of all kinds and 15 million pieces of garments a year, and generate around 3,000 jobs.
