South Korea is expected to catalyze the growth in Vietnam’s textile and garment sector exports, giving it a robust revenue return. The trends emanating from the first seven months of the current year have thrown up healthy portends for the annual revenue to be expected by the end of the year. The information was released by the General Department of Customs.
The figures available till July this year indicated that the Vietnam garment and textile exports had registered a 24.88 percent increase in a year-on-year comparison. Vietnam’s garment export value to South Korea stands USD 1.5 billion. The data augurs for a strong business environment for Vietnamese products. From a market perspective, Vietnam’s competition for exporting textile products to South Korea was from China. China was ahead of Vietnam in revenue figures by nearly 2%.
In recent years, Vietnam managed to reduce the gap further by rapidly accelerating its export growth figures to South Korean markets. In the previous year, Vietnam’s export revenue from South Korea stood at USD 2.7 billion, disclosed the General Department of Customs.
Vietnamese ministry in charge of textiles, attributed the strong growth trend to the high level of competitive ability in the sector and the market’s increased spending power. Besides, the FTA agreement between Vietnam and South Korea that allowed low taxation for 24 Vietnamese products worked in favor of the rapid growth. The Vietnamese officials have projected a 20% year-on-year growth by the end of the year.