US demand for Vietnam textiles
Third-quarter numbers for Vietnam's textile and garment industry show US demand growing and taking the lead amongst buyers.
US demand accounted for nearly 50 per cent of the industry’s total export revenue so far this year.
According to statistics from Vietnam’s General Department of Customs, export revenue for the first nine months of this year reached nearly US$17 billion (Bt605 billion), of which $8.3 billion came from the US market.
While the total textile and garment export value grew 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 were worth $2.03 billion and South Korea $1.54 billion.
Exporters in the industry look favourably on a constellation of recent free trade agreements, like the one signed with South Korea, the Eurasian Economic Union Free Trade Agreement signed in May and the long-discussed Trans-Pacific Partnership.
If the TPP is signed, Vietnam textiles and garments will be exported to the US without the current 17-30 per cent tariffs.
The sector plans to take advantage of the EU-Vietnam Free Trade Agreement finalised in August.
Once the parties sign the agreement, the 12 per cent tax on Vietnam’s textiles and garments will cease, making the products more competitive.
