Vietnam's Textile Industry Thrives While Indonesia Struggles: A Shift in Global Fashion Manufacturing?

Vietnam's textile industry is experiencing significant growth, becoming a major global producer and exporter. This contrasts sharply with the challenges faced by Indonesia's textile sector, including factory closures and workforce reductions. Vietnam's success is fueled by exports to markets like China, where it supplies 48.2% of total fiber exports. The country has also expanded its market share in the United States, Japan, and South Korea. Vietnam's textile sector comprises approximately 7,000 companies employing over three million workers. It has become a production hub for renowned brands such as Nike, Inditex, GAP, H&M, and Puma. The industry's growth is supported by a well-developed logistics network, a skilled workforce, and a stable political environment. There's an increasing emphasis on sustainability, with companies adopting eco-friendly materials like organic cotton and recycled polyester. In contrast, Indonesia's textile industry faces challenges related to import competition, particularly from China. While Vietnam's textile exports have reached US$37.6 billion, Indonesia's exports of spun yarn and textile products amounted to US$8.0 billion last year.