Vietnam is all poised for an astronomical growth in textile exports owing to a booming garment and textile industry; favorable trade policies and agreements; and growing industrialization to drive Vietnam textile chemicals market through 2025.
The report released by TechSci mentioned that the textile chemicals market in Vietnam is anticipated to grow at a CAGR of over 16% during 2016 – 2025, on account of higher living standards of consumers and growing demand for fine fabric items coupled with increasing number of industrial set-ups. Moreover, growing inclination of consumers towards new and brighter shades besides demand for beige and off-white shades is expected to positively influence the Vietnam textile chemicals market.
The Government of Vietnam is increasingly taking steps and measures towards economic integration, trade liberalization and improving industrialization in the country. For instance, on account of signing Vietnam–Korea Free Trade Agreement (VKFTA) in 2014 and EU–Vietnam Free Trade Agreement in 2015, the country is witnessing enormous textile exports as a result of reduced import duties. Moreover, with nearing implementation of Trans-Pacific Partnership (TPP) agreement, the country is expected to increase Vietnam’s garment and textile exports to the US to nearly US $ 30 billion by 2020, as compared with US $ 8.6 billion exports recorded in 2013, showcasing a magnificent growth of roughly 250%. Favourable trade environment of the country is expected to aid the growth of Vietnam textile chemicals market over the span of next five years.
Technical Textiles segment is the fastest growing end use application of textile chemicals in Vietnam on account of strong emphasis on utilization of industrial and smart fabrics in textile factories by the government as well as foreign investors. South region of Vietnam accounted for the largest share in the country’s textile chemicals market in 2015. South region has 114 industrial parks built along the banks of the Dong Nai river. Tan Thuan export processing zone, Tan Tao industrial zone, Tan Thoi Hiep industrial zone and Vinh loc industrial zone are some of the major industrial zones found to be marked with textile clusters in the southern part of Vietnam.
“Vietnam is exhibiting huge export potential for textile and garments owing to the reduced trade barriers and easy availability of educated and skilled labour in the country. As a result, various textile and garment manufacturers are looking forward to set up textile production pants and factories in Vietnam. The country is taking steps to reduce the dependency of textile industry on foreign nations for raw materials. Consequently, several textile chemical companies are planning to expand their production base in Vietnam as an effort to increase consumption of textile specialties in the country’s growing textile and apparel industry,” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
The TechSci report has evaluated the future growth potential of Vietnam textile chemicals market and provides statistics and information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyses the emerging trends along with essential drivers, challenges and opportunities in Vietnam textile chemicals market.