Ho Chi Minh City, Vietnam – Vietnam’s garment and textile sector has been expanding into major overseas markets and will do even better after several free trade pacts are finalized, according to industry insiders, quotes Thanh Nien Daily.
Le Tien Truong, deputy general director of the Vietnam National Textile and Garment Group (Vinatex), said clothing exports have grown more than 15 percent annually since 2001–some years saw over 30 percent growth.
Vietnamese garments make up over two percent of global market share, Truong told a reporter at Thoi Bao Kinh Te Saigon during a Friday conference in Ho Chi Minh City held to discuss the group’s public offering.
He said exports to major markets like the US and Japan rose by around 25 percent, despite a drop in their overall garment and textile imports.
Vietnamese garment and textiles now enjoy a nine-plus percent segment of the US market, compared to 3 percent six years ago, he said.
Vietnam’s segment of the US clothing market went from 8.38 percent in 2013 to 9.37 percent during the first four months this year, according to a post published on the Vietnam Textile and Apparel Association (VITAS) website over the weekend that drew on figures released by the Office of Textiles and Apparel of the US Department of Commerce.
Export revenues from the US market in the first four months this year rose more than 15.5 percent year-on-year to more than US$3 billion, the largest per-country gain, according to Otexa figures.
US imports from China, the country’s major source of yarn, increased only 0.68 percent in value and 5.43 percent in volume to $11.4 billion, but China’s segment of the US market dropped from 39.79 percent to 34.93 percent.
VITAS also released figures showing that Vietnam is the second biggest garment and textile exporter to Japan in terms of revenues, after China. Vietnam’s share in Japan’s garment and textile market rose from 6.74 percent last October to 7.62 percent in the first quarter of the year, while China’s slid from 71 percent to 66.55 percent, Thoi Bao Kinh Te Saigon reported.
Exports to Japan grew the most: hitting 40.52 percent in terms of volume and 32.45 percent in terms of value, according to the association.
Vietnam’s slice of the European Union market also shot up, although modestly, from 2.61 percent in September 2012 to 2.7 percent the first four months this year, whereas China’s segment narrowed from 41.94 percent to 34.36 percent.
Truong said the figures reflect “the competitiveness of Vietnam’s textile and garment sector, as well as the big space for it to grow.”
Excitement about free trade pacts
Figures from the General Statistics Office showed that Vietnam had exported more than $8.4 billion in textiles and garment by June 15, up 18.5 percent from the same period last year.
The US and Japan consume more than 60 percent of Vietnam’s textiles and garment exports, which will translate into bigger value when the Trans-Pacific Partnership Agreement negotiations wrap up, Truong said.
The TPP will include 12 countries and cut US tariffs on Vietnamese garment and textiles from over 17 percent to nothing.
But Truong said bigger changes are in store from the Vietnam-EU Free Trade Agreement, which is expected to come into effect in 2015.
The US imports $100 billion of textiles and garments a year (the EU $140 billion) and Vietnam makes just two percent of them.
Vietnam may also sign a free trade agreement this year with the Customs Union (Russia, Belarus and Kazakhstan), which imports $15 billion of garments and textiles a year — less than $300 million of which come from Vietnam.
Source: Thanh Nien Daily
Middle East News
- Media Information: Autefa Solutions announces new agency for the Indian market
- Denimsandjeans India to discuss trend of unisex denim
- RBI keeps repo rate unchanged at 6%
- Maharashtra cabinet approves textile policy for 2018-23
- UAE has the lowest VAT regionally and globally
- Costs rise at sharpest pace for UAE’s private sector businesses
- Budget 2018-19: Customs duty on silk fabric hiked to 20%
- Reduction in tax for MSMEs to benefit TN textile firms
- Budget: TEA hails Rs 7148cr allocation for textile sector
- Indian textile industry hails budget with some scepticism
- Arvind Q3 revenue up 16% at Rs 2,706 crore
- Amazon infuses 1,950 cr fresh capital to India operations
- Indian brand Ekaya at Paris Haute Couture Week
- E-commerce platform for artisans in India's Kashmir
- SRTEPC honours RIL with 5 gold trophies
- Indian economy to grow at 7.3% in FY 2018-19: World Bank
- Wazir Advisors Introduction
- 10 Reasons to Invest in Textile Sector in India
- India’s Standing in Global Textile and Apparel Industry
- India: A Land of Opportunities
- Patterns, images and colors demanded in the Iranian carper markets
- CE certificate or sign on the carpet; Indicator of product quality or inaudible imprint of international clarification
- The classification of textile floorings In terms of fire-taking behavior according to the provisions of European Union
- Remain unknown the place of modern carpet design