Vitenam's garment industry could be faced with a multitude of bankruptcies thanks to increasing labour costs and competition from China, according to an official quoted by Bloomberg.

Top clothing maker Viettien's vice-general director, Le Viet Toa, predicted that half of Vietnam's 2,000 garment factories could file for bankruptcy over the coming two years.

In turn, this could mean acquisition chances for state-owned Viettien, the director was reported as saying.

The company has already bought two fallen factories this year and now boasts a string of 36 production sites throughout Vietnam.

"Only the big companies will survive," Toa said in an interview with Bloomberg.

The situation is exacerbated by Vietnam's garment factory workers quitting their jobs for office jobs, which offer better rates of pay, as well as Chinese competitors' tactics such as shifting manufacturing to poorer and cheaper island provinces.

Vietnam's garment industry is its second-largest foreign-exchange earner, beaten only by crude oil.