Nearly 66.5% export turnover of textiles is spent on raw materials

VCN – Textiles has been a major export sector of Vietnam for many years, but this industry still being classified as “employed”.
nearly 665 export turnover of textiles is spent on raw materials
Material and labor costs are occupying a very large proportion in the product cost of textile in Vietnam. Photo: T.Bình

It’s still not counting on outsourcing for international brands and has not built a brand name. Most of the revenue earned from the exports of this sector are being invested back into importing raw materials.

According to the latest statistics from the General Department of Vietnam Customs, as of 15/11, the total export value of textiles (textile products, fabrics, fibers, raw materials and accessories) reached $US 27.43 billion.

However, at the same time, the country spent $US 18.233 billion importing raw materials for this industry, the equivalent to nearly 66.5% of the total export turnover. In that fabric items accounted for $US 9.798 billion, raw materials was $US 4,777 billion, cotton was $US 2.103 billion, and fibre was $US 1.555 billion.

Thus, the value of an exported textile product accounts for nearly 70% of the cost associated with the materials. In addition, the labor cost in Vietnam is very large (with about 2 million workers and it is the most labor-intensive industry in the country), plus transportation and administration costs, so therefore, with these additional costs added into the export price the textile industry’s revenue is insignificant.

Not only accounting for major value of the product, the dependence on imported raw materials also makes domestic enterprises passive and under pressure from foreign partners in the operation. Currently, the supplying markets are mainly located in Asia such as China, Japan, Taiwan and Thailand.

Also, according to the General Department of Vietnam Customs (according to the market by the end of October), China provided nearly $US 5 billion worth of textiles, $US 1.704 billion worth of materials and fiber was nearly $US 700 million.

Meanwhile, the Taiwan market provided more than $US 1.31 billion worth of textiles; over $US 416 million of raw materials and $US 244.3 million of fibre. The Japanese market provides two main groups of fabric (nearly $US 525.5 million) and raw materials ($US 203.5 million). The Thailand market also offers two main categories of fabric ($US 198 million), and raw materials ($US 189.5 million).

By Thái Bình/Thanh Thuy

Related News

Accelerating official fruit and vegetable exports to China

Accelerating official fruit and vegetable exports to China

VCN - Vietnamese businesses must update and meet China's increasingly stringent food safety requirements.
Vietnam’s trade activity declines in early November despite strong year-to-date growth

Vietnam’s trade activity declines in early November despite strong year-to-date growth

VCN - Vietnam’s import-export activity showed signs of slowing in the first half of November, with total trade turnover reaching US$33.44 billion, a 9.7% drop (equivalent to US$3.58 billion) compared to the second half of October, according to preliminary data from the General Department of Vietnam Customs.
Imports of textile and footwear materials soar amid robust industry growth

Imports of textile and footwear materials soar amid robust industry growth

VCN - Vietnam's appetite for raw materials in the textile and footwear sectors surged to new heights, with China firmly holding its position as the dominant supplier.
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.

Latest News

Nghệ An Province anticipates record FDI amidst economic upswing

Nghệ An Province anticipates record FDI amidst economic upswing

This places the province among the top 10 nationwide in FDI attraction, showcasing its increasing appeal to international investors.
Green farming development needs supportive policies to attract investors

Green farming development needs supportive policies to attract investors

The numbers investing in this sector remains modest, because the supportive mechanisms and policies for the investors are not attractive enough, according to experts.
Vietnamese enterprises adapt to green logistics trend

Vietnamese enterprises adapt to green logistics trend

Principal of the School of Business at the National Economics University, Associate Professor Dr Tạ Văn Lợi, talked to Vietnam News Agency about solutions for domestic enterprises to become more green in terms of logistics.
Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participating in cross-border e-commerce channels is considered a potential direction for domestic enterprises to directly approach Chinese consumers.

More News

VN seafood export surpass 2024 goal of $10 billion

VN seafood export surpass 2024 goal of $10 billion

Việt Nam’s seafood export in 2024 has surpassed its target of US$10 billion despite many challenges related to the market, logistics and materials, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).
Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK

Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK

The UKVFTA and the UK’s official participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) from December 15 are creating significant opportunities for Việt Nam to expand exports to the UK. However, the risk of trade defence investigations is always present.
Electronic imports exceed $100 billion

Electronic imports exceed $100 billion

Computers, electronic products and components are the first import group to exceed the US$100 billion mark this year.
Forestry exports set a record of $17.3 billion

Forestry exports set a record of $17.3 billion

Việt Nam’s forestry export turnover is estimated to reach a record of US$17.3 billion in 2024.
Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

VCN - Hanoi City aims to have clean agriculture by 2030, from land, water to air, and clean the environment, especially rivers. Hanoi must create a difference for agricultural product brands, products must be certified and must build the brand "made in Hanoi".
Việt Nam boosts supporting industries with development programmes

Việt Nam boosts supporting industries with development programmes

Việt Nam’s supporting industries play a crucial role in the development and competitiveness of key sectors, receiving substantial government investment and support.
VN

VN's wood industry sees chances and challenges from US new trade policies

Việt Nam’s wood industry will need to be flexible due to the anticipated new trade policies of US President-elect Donald Trump in the future, according to experts.
Vietnam

Vietnam's fruit, vegetable exports reach new milestone, topping 7 billion USD

Vietnam’s efforts in expanding export markets for its fruits and vegetables in 2024 has paid off as for the first time, the export of these products has brought home 7.2 billion USD, much higher than the figure of 3.3 billion USD two years ago.
Aquatic exports hit 10 billion USD

Aquatic exports hit 10 billion USD

Vietnam's aquatic exports reached 10 billion USD in 2024, driven by shrimp and pangasius, despite challenges related to markets, logistics, and raw materials, the Vietnam Association of Seafood Exporters and Producers (VASEP) said on December 23.
Read More

Your care

Latest Most read
Nghệ An Province anticipates record FDI amidst economic upswing

Nghệ An Province anticipates record FDI amidst economic upswing

This places the province among the top 10 nationwide in FDI attraction, showcasing its increasing appeal to international investors.
Green farming development needs supportive policies to attract investors

Green farming development needs supportive policies to attract investors

The numbers investing in this sector remains modest, because the supportive mechanisms and policies for the investors are not attractive enough, according to experts.
Vietnamese enterprises adapt to green logistics trend

Vietnamese enterprises adapt to green logistics trend

Principal of the School of Business at the National Economics University, Associate Professor Dr Tạ Văn Lợi, talked to Vietnam News Agency about solutions for domestic enterprises to become more green in terms of logistics.
Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participatin
VN seafood export surpass 2024 goal of $10 billion

VN seafood export surpass 2024 goal of $10 billion

Việt Nam’s seafood export in 2024 has surpassed its target of US$10 billion despite many challenges related to the market, logistics and materials, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).
Mobile Version