Foreign investors are attracted by low labour costs and skilled workers, according to experts.”Nearly
half of 2,000 companies in the garment and textile sector in Viet Nam
are FDI companies, mainly from Taiwan and South Korea..”Garment
and textile exports to Taiwan and South Korea and other markets have
also increased as these importers have been selling products in their
countries as well as exporting them..”The increase of FDI
enterprises in the garment and textile sector has caused an acute
labour shortage, with companies competing with each other to attract
labourers..”Real earnings from garment and textile exports are low
compared to other investment sectors since the garment sector is
involved mostly in outsourcing..”While certain incentives are
offered to FDI companies and not to local ones, unhealthy competition
in the export industry might result, according to Pham Xuan Hong,
deputy chairman of the Viet Nam Textile and Apparel Association..