This policy has helped the sector and individual businesses begin to leverage their potential.
The Vietnam National Textile and Garment Group was among the first domestic garment firms to start the equitisation process and remains one of the policy’s success stories. Stocks of companies in the garment industry are now attracting many investors. The garment industry contributes 10-15% of total GDP.
With modern facilities and up-to-date design technology, the localisation rate of Vietnamese garment production has increased from 20% to 50%. The sector is aiming to raise the rate to 70%, propel export revenues to over 50 billion USD and create 3 million new jobs by 2020.
"With a lot of favourable conditions, Vietnamese and foreign investors and business alike will find opportunities here in Vietnam", said Le Tien Truong - General Director of Vinatex.
According to statistics from the Vietnam Textile and Apparel Association, 20 foreign enterprises entered Vietnamese garment sector in 2015, with a total investment of 1.4 billion USD.
17 years after equitisation started in the garment industry, 90% of Vietnamese businesses have managed to record profits. The return on equity ratio has reached over 20% and employee incomes have increased 50%. In the coming years, the market is predicted to further thrive with a number of trade agreements coming into effect.
