Viet Nam expects to continue growth of textile and garment exports to South Korea by the end of the year after strong results in the first seven months of 2018, according to the General Department of Customs.– Photo thoibaonganhang.vn
Viet Nam expects to continue growth of textile and garment exports to South Korea by the end of the year after strong results in the first seven months of 2018, according to the General Department of Customs.
Up until July, Viet Nam gained a year-on-year increase of 24.88 per cent in textile and garment export value to US$1.5 billion to South Korea, creating a strong breakthrough of those products to this market.
In July alone, the export value of those products to this Northern Asian market reached $270.7 million, a rise of 24.18 per cent against June and 24.06 per cent compared with July 2017.
China and Viet Nam were the two largest garment suppliers to the South Korean market, accounting for 34.46 per cent and 32.67 per cent, respectively.
Viet Nam’s garment exports to this market accelerated rapidly reducing the gap between market share of China and Viet Nam on the South Korean garment market at 40.18 per cent and 29.52 per cent, respectively, three years ago.
According to Viet Nam’s General Department of Customs, South Korea became the fourth largest export market of Viet Nam, reaching $2.7 billion in 2017.
The Ministry of Industry and Trade said the strong growth in exports to South Korea was mainly due to the high competitive ability of Viet Nam’s garments and higher spending of consumers on this market.
In addition, tariff preferences from the Viet Nam – South Korea free trade agreement encouraged Viet Nam’s textile and garment products entering the South Korean market, the ministry said. According to the FTA, 24 products of Viet Nam enjoy lower tax against other countries in the ASEAN region.
By the end of this year, Viet Nam’s textile and garment exports to South Korea are expected to increase by 20 per cent year on year. The textile and garment export value is estimated to rise 22 per cent year on year to $3.2 billion for this whole year, reported vneconomy.vn.
Viet Nam is considered to have many advantages in supplying textile and garment products to South Korea. It is likely to become the largest garment supplier to this market.
The General Department of Customs said in the first seven months of this year, Viet Nam gained $10.2 billion from the total export value to South Korea, a year-on-year increase of 32.13 per cent.
Of which, three groups of phones and components, textile and garment, and computers and electronic products achieved export value of over $1 billion for each, accounting for over 40 per cent of Viet Nam’s total export value of goods to this market. — VNS