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HISTORY OF VIETNAM GARMENT INDUSTRY
1/Period before 1986
In 1954, after peace was restored, the North was completely liberated and had conditions for economic development to support the South to fight against the empire and reunify the country. During this period, Vietnam's textile and garment industry was interested in creating favorable conditions for investment and development by the Party and Government.
With the help of our brothers and friends, we have renovated and built a series of factories with large capacity such as: Weaving 8-3, Vinh Phu Textile, Dong Xuan Knitting, Nam Dinh Textile, Garment 10, Thang Long Garment… At the same time, a series of cooperatives and craft production groups were established to provide more products for the people's consumption needs.
In 1975, after the country was completely reunified, the textile and garment industry had more opportunities to develop when it was supplemented with a team of skilled workers from craft villages stretching from the Central to the South. A series of new factories were built such as Hanoi Yarn, Vinh Yarn, Hue Yarn, Nha Trang Yarn, Viet Tien Garment, Nha Be Garment, Huu Nghi Garment...
However, in this period, there are still limitations due to the general mechanism of the whole economy. Enterprises only produce according to the targets assigned by the state plan, without the flexibility and creativity in production, as well as product improvement and quality improvement. Products mainly serve domestic consumption and export to Eastern European countries.
2/Period from 1986 to 1997
Before 1990, because Vietnam only had relations with socialist countries, most textile products were consumed domestically and exported to Eastern European countries. When the socialist market in Eastern European countries collapsed, as well as Vietnam's economic transition from centrally planned, bureaucratic subsidies to a market economy, businesses (mostly state-owned enterprises) encountered many difficulties.
Familiar with the business mechanism of the subsidy period, enterprises are financed, inputs are available, production is according to assigned plan targets, output is fully consumed. Enterprises began to reveal their disadvantages: small production scale, lack of working capital, old and outdated technology, lack of scientific production organization skills... During this period, many enterprises unable to adapt to the new situation, the business suffered continuous losses and stood on the verge of bankruptcy.
During this period, there are also other notable points that are the macro policies of the State and the Government towards the national economy in general and Vietnam's textile and garment industry in particular:
The promulgation of the law on foreign investment in Vietnam and Vietnam going abroad is a prerequisite for economic development. The government's policies to encourage foreign investment have made the textile industry attract a large amount of capital. The main form of investment is direct investment (FDI), in the form of a joint venture. The above factors create favorable conditions for textile and garment enterprises to have access to advanced and modern technologies and new business management methods. The textile industry is innovated in both quality and quantity.
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Along with the rapid growth momentum, the textile and garment industry has expanded the export market. With the policy of multilateralization and diversification, not only relations with socialist countries and Eastern European countries, but also gradually established diplomatic and trade relations with many other countries in the world. . Since then, opening up new markets such as EU, Japan, ASEAN... through the application to join WTO (1994), ASEAN (1995), ASEM (1996)... This is the source of outstanding development. level in Vietnam's textile and garment industry
3/ The period from 1998 to present
If the period before 1998 was the process of forming and shaping Vietnam's textile and garment industry, this period is the development stage. Vietnam expands to develop markets around the world. In November 1998, Vietnam was admitted to APEC
The bilateral trade agreement with the United States came into effect in 2001 and the accession to the Agreement Establishing the WTO (2006) marked the remarkable growth of Vietnam's textile and garment exports.
According to statistics in 2001, the whole industry had 1,031 enterprises, by 2016, the number of enterprises in the industry was about 8,000 enterprises. The average growth rate reached 17%/year in the period from 1998 to present.
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