Foreign investments have increased in the garments sector since the third quarter of last year due to high quality products and fast delivery.
When the largest Vietnamese textile and garment buyer from USA withdrew from TPP (Trans Pacific Partnership), foreign direct investment capital was injected into the local garment sector and it flowed to other markets with lower labor cost and low import duties such as in Cambodia, Bangladesh and Myanmar.
According to Vietnam Textile and Apparel Association (VITAS), Vietnam inked 16 multilateral and bilateral free trade agreements including EVFTA and CPTPP, which will be taking effect soon.
Vietnam’s second-largest importer, European Union import duties range from 10-12% will become zero when EVFTA comes into effect and since South Korea has clinched a two way FTA with Vietnam as well as a cooperation agreement with European Union, it will become largest investor in Vietnam garment sector taking over Taiwan rank.
Vietnam has attracted huge FDI of 137 projects in 2014 with a value of US.
75 billion. Following 197 projects worth US$2.6 billion in 2015 and 184 projects worth US$1.5 trillion in 2016 but last year due to US withdrawal the numbers came down to 129 projects worth US1.
4 million.
The textile garment exports year on year growth till May is 15.8% amounting to US$10.91 billion whereas, month on month basis its 11.2% amounting US$2.35 billion.
Largest buyer of Vietnamese apparel products, US, in the five-month period, at US$5.15 billion, rising 12.7% versus the year-ago period and accounting for 47% of Vietnam’s total textile-garment exports. The European Union ranked second with export revenue of US$1.46 billion, followed by Japan with US$1.39 billion and South Korea with US.
09 billion.
The target of $34-34.5 billion in apparel export turnover this year is 10% higher than last year’s and domestic Vietnamese enterprises can benefit from US-China trade.
