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. China’s strict pandemic control, where more than 50 per cent of raw materials for the Vietnamese textile and garments are sourced, has pushed up input costs.

In addition, the EU has introduced new regulations on the textile industry, including replacement rates, green products and switching from fast fashion to sustainable fashion, which makes it harder for Vietnamese apparel products to enter this region.In this context, the UK is emerging as a promising market.