The Vietnam Ministry of Industry and Trade gives approval to the new textile and garment industry development plan 2020 which aims to achieve 55 percent localization rate by 2015 and further expected to increase to 65 percent and 70 percent by 2020 and 2030 respectively. The plan is draw to boost the industry’s growth.

Under the new plan firms specialising in fashion production as well as in the supply of related services will be positioned in urban areas while labour-intensive textile and garment firms will move to the rural areas.

Vietnamese clothing products are being exported to 50 countries and territories with the US being the largest importer of Vietnamese textiles and garments, accounting for 48 per cent of the industry's total export revenue.

The export turnover is estimated to reach $40 billion in the 2020-2025 period, requiring 12 billion square metres of fabric and five million workers.

Textiles and garments currently make up 13.6 percent of the country's total export value with the signing of trade agreements, the percentage is expected to rise further. The country is currently negotiating the Trans-Pacific Partnership Agreement (TPP) and the Vietnam-EU Free Trade Agreement, which are expected to come into effect in the next couple of years.

At present, Vietnamese garment and textile products bear the average tax rates of 17.5 per cent and 9.6 per cent in US and EU, respectively. But, with the signing of these agreements are signed, it will enjoy zero per cent tax rate in these two countries.

Vietnam's exports to the US and EU are still limited. The US and EU markets spent $105 billion and $260 billion on garment and textile products respectively, last year. However, Vietnam's exports accounted for only 8 per cent and 3 per cent of the US and EU market shares respectively.

According to the new textile growth plan, during the 2013-2020 period, the industry plans an annual production growth rate of 12 to 13 per cent.

Exports in the 2013-2015 period are expected to increase by 10 to 11 per cent yearly, increasing by 9 to 10 per cent in the 2016-2020 period, and by 6 to 7 per cent in the 2021-2030 period. The domestic market growth rate will be 9 to 10 per cent in the 2013-2015 period and 10-12 per cent in the 2016-2020 period.