US demand grows for VN textiles and garments
US demand grows for VN textiles and garments
Third-quarter numbers for Viet Nam's textile and garment industry show US demand growing and taking the lead amongst buyers, accounting for nearly 50 per cent of the industry's total export revenue so far this year.
According to statistics from Viet Nam's General Department of Customs, export revenue for the first nine months of this year reached nearly US$17 billion, of which $8.3 billion came from the US market.
While total textile and garment export value grew by 10 per cent compared to last year, the US market outstripped it with a 13.6 per cent increase. This means US buyers are active leaders of the sector's expansion.
The second and third largest importers trail the US considerably; Japan imports $2.03 billion, and South Korea $1.54 billion.
Exporters in the industry look favourably on a constellation of recent free trade agreements, like one already signed with Korea, the Eurasian Economic Union Free Trade Agreement signed in May and the long-discussed Trans-Pacific Partnership (TPP).
If the TPP is signed, Viet Nam textile and garment exports to the US will see the current 17-30 per cent tariffs dropped.
The sector plans to take advantage of the EU-Viet Nam Free Trade Agreement whose negotiations were finalised in August. Once the parties sign the agreement, the 12 per cent tax on Viet Nam's textiles and garments will cease, making the products more competitive in the market.
