Vietnam is the go-to destination amidst of US-China trade war for apparel sourcing. A staggering US$ 27. 4 billion apparel export with an incredible 10.4% growth from January to October of this year.
According to the Vietnam Textile and Apparel Association (VITAS) data in the first of this year, the USA was the largest importer of apparel goods worth US$ 7.22 billion, up 12.84% year-on-year.
Vietnam is also the largest export market of the USA, the EU, Japan, South Korea and China.
Not only has the export to the US increased but imports from the member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and EU also up significantly.
Despite all the ups, there are some opposite downward pulls. The VITAS General Secretary Truong Van Cam said the country has been affected indirectly by the perpetual trade war. The yarn export to china has fallen since the year begin.
There are other key factors like the shrinking of the global fashion industry also playing a critical role in this. And in this FY manufacturers have received less long-term orders.
And like any other apparel sourcing country, Vietnam needs further investment in high-value items.
Truong Van also stressed on commitments to rules of origin under the Free Trade Agreements.
Other concerns like over capacity and labor is also looming once the EVFTA and the CPTPP trade pact come into force.
On top of it around US$13 billion apparel import in the last FY.
Most of imported cloth has yet to satisfy the quality requirements of the country’s key garment export markets, said VITAS.