Vietnam's fabric and clothing exports grew 18 per cent on an annualised basis throughout the first five months of 2014. The US was the largest importer of Vietnamese textile products in the first five months. Japan came next followed by South Korea.
Regional minimum wages in the country grew by an average of 9.9 per cent in 2010, 30.1 per cent in 2012 and 15.2 per cent in 2014. A number of companies have cautioned the government that any minimum wage increase remains in line with the growth of Gross Domestic Product and overall inflation levels. Wage adjustments would largely affect the garment, footwear and fishery industries.
During the five-month period, Vietnam's yarn export registered an increase of 18 per cent. China was the biggest importer from Vietnam followed by Turkey and South Korea. Vietnam’s cotton imports soared by 33.2 per cent year-on-year during the initial five months of 2014. Yarn imports grew by 9.2 per cent year-on-year.
The Vietnam Textile and Apparel Association has called on the country’s manufacturers to consider importing yarn and fabrics from countries such as India, Indonesia, Malaysia, South Korea and Thailand. This comes as a bid to reduce Vietnam’s dependence on China, its main supplier to these sectors.