Vietnam’s Apparel Exports on Growth Track Despite TPP’S Demise
Vietnam’s garment and textile exports are on track to hit $30.5 billion according to estimates by the Vietnam Textile Association, or VITAS. In the first eight months of this year, exports in the sector increased 9.9% compared to the same period a year earlier to reach $19.8 billion, VITAS president Vu Duc Giang said at the Cotton Day celebrations in Ho Chi Minh City.
Vietnam imports 60 percent of its fiber, as cotton farms in Vietnam meet only 0.04% of the domestic textile sector’s demand, the Vietnamese News Agency quoted Giang as saying at the event, organized by VITAS along with the U.S. Cotton Council International.
Vietnam was expected to grow even more in importance as a sourcing destination if the Trans-pacific Partnership had come to fruition. But President Trump derailed the proposed free trade agreement after entering office, saying it would hurt U.S. workers and industry. Though efforts have been made to revive the deal without the U.S., the latest news seems to indicate that Vietnam may no longer be interested in moving forward.
According to U.S. Fashion Industry Association Vietnam was the second most sourced country after China, with 88% of respondents saying they manufactured there.