Vietnams textile and garments exports have increased in July

Vietnam's textile and garments exports have increased in July

Vietnam's textile and garment exports grew 14.5% to US$3.3bn in July and were up 10.8% for the first seven months of the year to $18.4bn, according to new data from the Vietnamese customs department.

The General Department of Customs said the US was the largest market for Vietnamese garment products by the end of July, with imports up 10.1% year-on-year to US$8.49bn and accounting for 46% of the country's total textile and garment export turnover. Japan's imports of Vietnamese products rose 4.9% to US$2.15bn and the EU's were up 6% to $2.47bn.

However, while footwear exports fell 0.7% to US$1.62bn during July, they were up 12.9% to US$10.63bn on a seven-month basis. The EU and the US remained the two main markets for footwear from Vietnam, with turnover and growth of US$2.95bn (up 9.2%) and $3.76bn (up 14.1%) respectively during the seven months.

Vietnam's apparel industry accounts for about 15% of the country's total exports, reaching more than US$36bn in 2018. The country now ranks among the top-five garment exporters globally.

The country is eyeing an export target of US$40bn for textiles and apparel this year, an increase of 10.8% year-on-year. It is set to be one of the biggest beneficiaries of the US-China trade war as US fashion brands looking to alternative sourcing destinations.

However there are fears that competition for limited factory capacity will start to push up prices, with further pressures on orders coming from the country's participation in two major new trade deals: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).