Knitting in Vietnam. Why?

Lot of major buyers from USA are concerned and share, that China loses its competitive edge in the clothing. China has become a victim of its own success. Rising wages have been a direct consequence of the economic boom in the country, which has led to upward pressure on China's currency - the RMB. Although the Chinese authorities have not taken the risk of allowing the currency to float freely, they have accepted that it is not possible to keep a lid on it. As a result, the US market has become less lucrative for Chinese suppliers.

In other hand the drop in US imports from China reflected positively at the textile industry in Vietnam. The sourcing demand is increasing also because of the political stability, highly motivated workforce and competitive price level. In the first quarter of 2008, sales of Vietnamese apparel in the US market were up by over 30% compared with the corresponding period of 2007. As a result, the producers engaged in knitting in Vietnam, weaving, confection, dyeing, etc in the textile industry had a significant boost during that period which continue now a days.

Knitting Factory in Vietnam

At the February edition of MAGIC, Las Vegas – one of world’s largest trade shows in the apparel industry, Vietnam Knitted Garment Ltd - knitting factory located in Vietnam participated and was one of the few Vietnamese manufacturers at the event. Later on the August show the Vietnam pavilion brought about 10 companies. Next February is expected a larger number of Vietnamese exhibitors in response to the growing demand for sourcing form Vietnam.

Pictures of the knitting factory: