Vietnam’s apparel exports to China has been rising steadily. The Southeast Asian Country has registered US $ 3.2 billion in export earnings from China in 2016, up from US $ 2.2 billion in 2015, a data released by Vietnam Textile & Apparel Association (VITAS) shows.
As per the ASEAN-China Free Trade Agreement (FTA), Vietnam’s textile and garment products to China are not taxed.
VITAS said that China is one of Vietnam’s top five textile export markets, while the country has been gaining an increasing share in the global apparel business over the past few years. Last year, the socialist republic country’s textile and garment exports were worth US $ 31 billion.
Vietnam’s Custom data, however, shows the import from China in 2017 were high at US $ 9 billion, or 42.7 per cent of all textile-related imports, and 12 per cent higher than in 2016.
Other than China, Vietnam also imports textile raw materials from South Korea and Taiwan but it is popularly believed that the Chinese products are comparatively much cheaper than the Korean and Taiwanese products.
Notably, Chinese local market has been flourishing over the last few years since the country has the world’s largest population, which can be offering an extensive opportunity to the apparel manufacturers of the hubs like Vietnam, Cambodia, Bangladesh and India.
Among the garment manufacturing hubs, Vietnam has been the frontrunner so far in a bid to become the biggest readymade garments supplier to the world’s second-largest economy.