Apparel exports in Vietnam will, in all probability, see an increase of 14.8 per cent in 2018 to reach the projected target of US $ 35 billion.
The growth holds significance amidst the escalating trade war between USA and China.
USA had imposed heavy tariffs on Chinese products worth US $ 250 billion and China immediately retaliated by imposing duties on US products worth US $ 110 billion.
While apparel products have escaped penalties so far, many apparel manufacturers have started moving their production to Vietnam.
In a recently released statement, it was highlighted that Vietnam’s apparel exports to USA increased by 12 per cent in the first 10 months of 2018 while its exports to China saw an increase of 40 per cent in the same period.
Substantiating further, Vu Duc Giang, Chairman, VITAS, said that orders are pouring into Vietnam at a good pace from USA.
He also added that while the trade war was instrumental in the increase of orders in Vietnam, several free trade agreements signed by Vietnam have ended or reduced export and import taxes.
There has also been a huge surge of foreign investment into Vietnam especially from countries like Japan, Taiwan, South Korea, and China.