Vietnam’s denim and jeans sector is seeing better export opportunities thanks to higher global demand, lower European taxes, and the country’s efforts to embrace sustainable textile and garment development.
The world’s denim and jeans market was valued at more than $6.2 billion in 2021 and is expected to expand at a combined annual growth rate (CAGR) of 8.26% over the next five years to reach $9.98 billion by 2027, according to the “Denim Jeans Market Research Report 2023-2027" released this February by Market Growth Reports, a global firm in the market research industry.
Denim jeans are a very popular article of casual dress around the world, and come in many styles and colors. However, blue jeans are particularly identified with U.S. culture. Denim jeans have a very wide appeal and are considered comfortable, durable, trendy, and cool, according to the report.
Sandeep Agarwal, CEO of Indian company Balaji Enterprises and founder of sectoral platform Denimsandjeans.com, told a press briefing in Ho Chi Minh City Friday that Vietnam, as a key exporter of textile and garment products worldwide, is shipping plenty of denim clothes. Europe’s taxes on the products are 4-6% currently but will drop to zero over the next two years.
Another advantage for Vietnam is the continued efforts of the apparel sector to embrace green production, sustainability, and circularity to further fuel green exports and sharpen its competitive edge.
Agarwal said his company and his denim platform, in partnership with the Vietnam Textile and Apparel Association (VITAS), will organize the fifth edition of the Denimsandjeans.com Vietnam Show in HCMC on March 1-2 with the participation of fabric and apparel enterprises from 10 countries and territories, who will showcase the latest fashion trends and innovations in the global denim industry.
The event is also expected to serve as a good opportunity for exhibitors to seek and establish partnerships, and for the Vietnamese denim supply sector to show its competency to international visitors, said VITAS general secretary Nguyen Tuyet Mai.
On the sidelines of the show, a series of seminars will be held with international experts taking part to discuss the future of denim supply, sustainable development, artificial intelligence-assisted breakthroughs for denim, and other issues, according to the organizers.
Around 20 years ago, denim jeans were basic products, but they are nowadays fashion items that change every season with different varieties.
As for jeans imports to the U.S. from January-October last year, women’s and girls’ items rose 19.06% to $285.82 million, while men’s and boys’ jeans were up 19.36% to $93.33 million, according to data from the U.S. Commerce Department’s Office of Textiles and Apparel (OTEXA).
Vietnam earned around $44 billion from textile and garment exports in 2022, up 8.8% from 2021, with items shipped to 66 countries and territories worldwide, according to VITAS. This year’s expected value is $47-48 billion in a positive scenario and $45-46 billion in a less positive scenario