Vietnam’s exports of textiles and garments to China have exponentially increased in recent years, surging from $2.7 billion in 2016 to around $3.2 billion in 2017. Economist report the average annual growth of exports remained more than 20 per cent for the past three years. Data from the General Department of Vietnam Customs show the import value of textile and garment from China touched around $9 billion last year, accounting for over 42.7 per cent of the country’s total imports and rose over 12 per cent last year. Value trade was nearly four times higher than that of Republic of Korea and nearly five times higher than that of Taiwan - the two major import markets of Vietnam in recent years.
China and Vietnam are known rivals in many garment export markets. China’s textile and garment exports touched $260 billion annually, while Vietnam’s apparel products were initially exported to the Chinese market, surging to over $31 billion last year. The Vietnam Textile and Apparel Association (VITAS) estimates it will be easier for them to export higher number to China from 2018 following significant growth in Chinese, Russian and Cambodian markets. As per Vu Duc Giang, President, VITA the reasons for the increase is Vietnam’s fibre exports to China benefit due to a zero per cent tariff under the ASEAN-China FTA, while products from other markets have to pay 3-5 per cent duty.
Further, the Regional Comprehensive Economic Partnership (RCEP) between ASEAN and the six countries of China, the ROK, Japan, India, Australia and New Zealand is expected to boost Vietnam’s exports to China.
By the end of 2017, China was among the top five consumers of Vietnam’s textile and garment products valued at over $3 billion. Le Tien Truong, General Director, Vietnam National Textile and Garment Group (Vinatex), says their country has so far been the world’s leading textile and garment exporter but Chinese products are dominating the domestic market. However, remarkable improvements have been seen in Vietnam’s exports to China.
