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Viet­nam is a South­east Asian coun­try, with more than 96 mil­lion in­hab­i­tants (July 2017), be­ing world’s 14th most pop­u­lous coun­try. Bor­der­ing the Gulf of Tonkin, Gulf of Thai­land, and the South China Sea, as well as China, Laos, and Cam­bo­dia, viet­nam lies in a lu­cra­tive ge­o­graph­i­cal lo­ca­tion from trade per­spec­tives.

Coun­try’s 61.79% of the pop­u­la­tion be­longs to the age group of 15-54 years, mak­ing the me­dian age of the coun­try 30.5 years. Also, with 34.9% ur­ban­iza­tion, 94.5% lit­er­acy (age 15 and over can read and write), and a sta­ble po­lit­i­cal sys­tem, Viet­nam is has be­come an at­trac­tive in­vest­ment des­ti­na­tion.

It is a densely pop­u­lated de­vel­op­ing coun­try, tran­si­tion­ing from a rigid cen­trally planned econ­omy to a more in­dus­trial and mar­ket-based econ­omy. Coun­try’s GDP was $201.3 bil­lion in 2016, with 32.7% of it be­ing an in­dus­trial con­tri­bu­tion. Viet­nam’s 2016 GDP growth was 6.2%, re­flect­ing its strong do­mes­tic de­mand and man­u­fac­tur­ing ex­ports.

Viet­nam joined the WTO in Jan­uary 2007. It also con­cluded sev­eral Free Trade Agree­ments (FTAS) in 2015-16, in­clud­ing the Eu-viet­nam Free Trade Agree­ment, the Korean Free Trade Agree­ment, and the Eurasian Eco­nomic Union Free Trade Agree­ment, as a part of its com­mit­ment to­wards coun­try’s global eco­nomic in­te­gra­tion. Viet­namese gov­ern­ment also ac­knowl­edges the need for a sec­ond wave of eco­nomic re­forms, in­clud­ing re­form­ing state-owned-en­ter­prises, re­duc­ing red tape and in­creas­ing busi­ness sec­tor and fi­nan­cial sec­tor trans­parency.

Viet­nam owned 7% of the global ap­parel ex­port trade in 2016. Viet­nam’s ma­jor trade part­ners are USA, Ja­pan, Korea, UK, and Ger­many. Viet­nam im­ports its tex­tiles ma­jorly from China, Korea, USA, Ja­pan and other Asian coun­tries.

Viet­nam a coun­try with a pop­u­la­tion of 92 mil­lion peo­ple of which 52 mil­lion peo­ple are work­ing. Al­most 20 years back Viet­nam had started its ap­parel pro­duc­tion how­ever they weren’t a sig­nif­i­cant con­trib­u­tor to the world sup­ply un­til 2005. They are presently cater­ing to 5.7% of the world re­quire­ment. To­tal Ex­port of Tex­tile and Ap­parel amounts to USD 31 bil­lion of which ap­parel ex­ports con­trib­utes to a tune of 80% which is US 25 bn.

Viet­nam is ex­port­ing ma­jorly to USA (45%), EU (17%), Ja­pan (12%), South Korea (10%), China (3%), Hong Kong (1%),

• 700 ex­port fac­to­ries

• 2.5 mil­lion work­ers

• 80% of fe­male work­ers

• Work­ers are en­gaged through con­tracts. Con­tracts usu­ally are of three types, dif­fer­ing in their tenures

Mex­ico(1%) etc.

There are about 5000 ap­parel man­u­fac­tur­ing fac­to­ries com­pris­ing in Viet­nam which con­sist of MSME, cor­po­rates, units with 100% FDI (20% of to­tal units), state owned en­ter­prise which are turned into pri­vate owned fac­to­ries but still a sig­nif­i­cant stake is with the Gov­ern­ment and about 12% of the coun­tries ap­parel turnover is con­trib­uted by these en­ter­prise which oper­ates un­der the name VINATEX. Most of the FDI’S are from China, South Korea, In­dia, Ja­pan, Turkey and Tai­wan. FDI has been re­ceived on ac­count ex­pec­ta­tions on TPP and FTA with EU which seems a dis­ap­point­ment at this point of time as US re­frained from ne­go­ti­a­tions and still ne­go­ti­a­tions are on with EU. They are also in the process of ini­ti­at­ing talks with coun­tries like Aus­tralia, New Zealand, and Canada on CEPA. 90% of the fac­to­ries works on CMT (Cut, Make & Trim) base pro­duc­tions, the sourc­ing com­pany’s source fab­rics from China, Korea, In­dia, Pak­istan, Italy and Turkey.

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