Out of Vietnam’s garment exports in the first half of 2022 more than 50 per cent went to the US.

Japan is the second largest market for Vietnam. Exports to Japan in the first half of 2022 were nine per cent of Vietnam’s exports, South Korea eight per cent, China four per cent and Canada four per cent. Germany, UK, France, Netherlands, Australia, Belgium and Switzerland were the other markets of Vietnam with exports of more than one per cent each.

Vietnam’s garment exports to the UK were up 88 per cent in August 2022 as compared to August 2021. Vietnamese enterprises are taking advantage of the UK-Vietnam Free Trade Agreement to expand their presence in this market.The UK accounts for less than two per cent of Vietnam’s total export value of garments. However, with the advantage of lower tariffs thanks to the agreement, Vietnam has a big chance to expand its market share. Under the agreement, about 42 per cent of Vietnamese textile and garment exports will be liberalised at entry into force, while some garment products will see tariffs eliminated after six years.

Vietnam is the world’s third largest exporter of garments. But the industry is facing many difficulties including a steep fall in export orders due to soaring inflation in major markets and rising input costs.