Vietnam is a big garment exporter

Textile and garment exports to the South Korean market have soared recently compared with three years ago.

According to the General Department of Customs (GDC), in the first seven months of 2018, Vietnam’s total export turnover to South Korea reached $10.2 billion, an increase of 32.1 percent over the same period last year.

Analysts are paying special attention to the sharp increase in textile and garment exports to the market. 

$1.5 billion worth of the products were exported, representing a high growth rate of 24.8 percent compared with the same period of 2017. In July alone, the export turnover was $270.7 million.

China and Vietnam are the two biggest garment exporters in South Korea which hold 34.5 percent and 32.7 percent of market share, respectively, while the figures were 40.18 percent and 29.5 percent three years ago.

Also according to GDC, South Korea has become the fourth largest export market for Vietnam’s textiles and garments and it is very close to Japan with import turnover of $2.7 billion in 2017.

To date, Vietnam’s garments have obtained only 30 percent of the market share, which means that Vietnam still can penetrate more deeply into the market.

The high competitiveness of Vietnam’s garments and spending of South Koreans are behind the high growth rate of textile exports. 

Meanwhile, the Ministry of Industry and Trade (MOIT) pointed out the Vietnam-South Korea FTA, under which 24 product lines can enjoy preferential tariffs.

Analysts predict that Vietnam’s garment exports to South Korea may increase by 20 percent from now to the end of the year compared with the same period last year, thus raising the total export turnover to $3.2 billion in 2018.

The high growth rate in garment exports to South Korea could be seen as an opportunity to attract more FDI from South Korea into the textile & garment sector.

Le An Hai, deputy director of the Asia & Africa Market Department, said that South Korean investors have recently shifted their investments to Vietnam to take full advantage of CPTPP.

The Korea Trade and Investment Promotion Agency predicted that the tendency of South Korean relocating their investments from China to Vietnam may be seen more clearly in two to three years. At least 62 percent of South Korean businesses in Vietnam want to scale up their production.

RELATED NEWS

Vietnam’s textile & garment industry expect big benefits from EVFTA

Textile & dyeing projects unwelcome because of environmental risks

Kim Chi