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Vietnam’s Textile Sector Sees Export Revenue to cross US$30 bn in 2017

Vietnam’s textile and apparel sector witnessed a number of moves in 2017 in a bid to increase the monthly wage minimum by 6.5% in 2018. The major moves include increased investments by Chinese and Taiwanese enterprises, efforts to increase exports revenue by over US$30 billion, and association of India’s Reliance Industries Limited with PetroVietnam to start the Dinh Vu polyester plant again.

Starting January, the monthly wage in Vietnam will witness a hike of minimum 6.5% totaling to the extra spending of 180,000-230,000 Vietnamese dong depending on the region. As a result of the hike, the total monthly minimum wage will amount to US$136 and US$175 in the lowest and highest regions respectively.

Textile and Apparel Sector Receiving End of Wage Hike Move

The move, however, is opposed by the Vietnam Textile & Apparel Association that made the argument that several industry sectors have been struggling with wage hike over the past decade. Prior to this, between 2007 and 2017, domestic enterprises witnessed wage hike by 21.8% leading many of these enterprises to lower workers’ bonuses and deploy machines in place of human labor.

Earlier in October, the Vietnam Textile & Apparel Association plead the government not to hike the import duty on polyester from zero to two percent. The appeal was followed by feedback from several domestic enterprises that are struggling to sustain due to the high cost associated with importing raw material.

Prior to this, in the first six months in 2017, Vietnam’s textile and apparel sector fetched investments worth more than US$750 million in the form of foreign direct investment (FDI).

Ganesh Rajput
Ganesh’s extensive experienced in the field of market research reflects in the way his articles offer readers sharp insights on the latest developments across major industry verticals. His forte lies in churning out analytical commentaries on the evolving nature of various consumer-oriented industries.

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