Analysis: Vietnam’s Apparel Exports to EU (January to May 2018)

Vietnam is on rise in its apparel exports to the 28-nations bloc, but in just volumes. Value of exports was disappointing as unit prices declined massively by 26.09 per cent. The decline in unit prices indicates that Chinese and Korean-owned factories in Vietnam are probably trying to capture large volumes of order to make a notable presence in the European market which is, until now, has been phenomenally dominated by Bangladesh.

Further, in the month of May this year, Vietnam just exported apparels to EU worth US $ 211 million as compared to US $ 200 million in April ’18. On M-o-M basis, the surge was noted by 21.36 per cent. However, if we talk about performance on Y-o-Y basis, Vietnam fell by 2.60 per cent as the country exported apparels worth US $ 216.64 million in May ’17.

However, growth perspectives for Vietnam in EU market are bright due to upcoming FTA with the Union as well as the probable graduation of Bangladesh from LDC to developing country which might snatch GSP benefit from the country shifting a major share of market towards Vietnam.

Total apparel import (Quantity) by the European Union
 6.62% (1,887.98 mn kg)

Total apparel import (Value) by the European Union
 2.10% (€ 32,115.94 mn)

Total import of Knitted Garment
Quantity
 5.22% (1,025.12 mn kg)
Value
 2.72% (€ 15,271.35 mn)

Total import of Woven Garment
Quantity
 8.32% (862.85 mn kg)
Value
 1.53% (€ 16,844.59 mn)

[The information has been extracted from EU custom site and further analyzed].

Value wise share of top exporting countries

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Order XYZ has the following details:

Order Quantity	Pcs	Fabric received	Metres	(Actual Production Markers)	Small	Medium
Required cut quantity	1859 pcs.	Cut quantity	2860 metres	Estimation vs Actual production requirement	120	200
Consumption stated by CAD		Fabric used by cutting	250 metres	Estimation vs Actual production requirement	40	300
	1915 pcs.	Cut quantity	2860 metres		120	400
Required cut quantity	1915 pcs.	Fabric used by cutting	250 metres	Estimation vs Actual production requirement	30	500
Consumption stated by CAD	1859 pcs.	Cut quantity	250 metres		120	500
Required cut quantity			2860 metres	Estimation vs Actual production requirement	80	14
Consumption stated by CAD	1859 pcs.	Cut quantity	28 metres		120	57
Required cut quantity	1859 pcs.		28 metres	Estimation vs Actual production requirement	120	04
Required cut quantity	1915 pcs.	Fabric used by cutting	2860 metres	Estimation vs Actual production requirement	50	52

Apparel imports of the EU: selected countries

Country/Category	'Jan.-Feb. 2016		'Jan.-Feb. 2017		% increase / decrease		UVR	UVR
	Qty	Value	Qty	Value	Qty	Value	2016	2017
WORLD
Knitted	420.16	6747.92	405.67	6704.54	-3.45	-0.64	16.06	16.53
Woven	353.87	7529.64	331.23	7148.11	-6.40	-5.07	21.28	21.58
Total	774.03	14277.56	736.90	13852.65	-4.80	-2.98	18.45	18.80
CHINA
Knitted	142.28	2177.78	136.37	2074.52	-4.16	-4.74	15.31	15.21
Woven	146.71	2816.10	132.22	2555.78	-9.88	-9.24	19.19	19.33
Total	289.00	4993.88	268.58	4630.30	-7.06	-7.28	17.28	17.24
INDIA
Knitted	28.06	482.57	27.71	474.72	-1.27	-1.63	17.20	17.13
Woven	18.54	18.54	18.54	18.54	18.54	18.54	18.54	18.54
Total	18.54	18.54	18.54	18.54	18.54	18.54	18.54	18.54
BANGLADESH
Knitted	18.54	18.54	18.54	18.54	18.54	18.54	18.54	18.54
Woven	18.54	18.54	18.54	18.54	18.54	18.54	18.54	18.54
Total	112.21	112.21	112.21	112.21	112.21	112.21	112.21	112.21
BANGLADESH
Knitted	69.70	112.21	112.21	112.21	112.21	69.70	69.70	69.70
Woven	69.70	112.21	112.21	112.21	112.21	69.70	69.70	69.70
Total	69.70	112.21	112.21	112.21	112.21	69.70	69.70	69.70
PAKISTAN
Knitted	69.70	112.21	112.21	112.21	112.21	69.70	69.70	69.70
Woven	69.70	112.21	112.21	112.21	112.21	69.70	69.70	69.70
Total	69.70	112.21	112.21	112.21	112.21	69.70	69.70	69.70
VIETNAM
Knitted	69.70	112.21	112.21	112.21	112.21	69.70	69.70	69.70
Woven	69.70	112.21	69.70	69.70	69.70	69.70	69.70	69.70
Total	69.70	69.70	69.70	69.70	69.70	69.70	69.70	69.70

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