Vietnam’s RMG sector eyes bigger share in South Korean market In 2018, Vietnam expects 20% surge in garment exports to South Korea.
After registering a staggering surge of around 25 percent to US $ 1.55 million in readymade garment exports to South Korea in the first seven months of the current year, Vietnam eyes on further increasing its shipments to the country by the end of the year to garner overall export growth. (The figures were reportedly released by vietnam’s General Department of Customs).
Notably, garment exports from Vietnam to South Korea stood at US $ 270.7 million in the month of July 2018, marking a surge of 24.18 percent against June 2018 and a 24.06 percent increase over the same month of 2017.
The General Department of Customs has also reportedly claimed that South Korea remained the fourth-biggest export destination to Vietnam at US $ 2.7 billion in 2017.
It’s pertinent to add here that Vietnam (32.67 percent) is only second to China (34.46 percent) in terms of garment exports to South Korea.
Markedly, Vietnam-south Korea free-trade agreement (FTA) has further bolstered exports to the country. Under the FTA, 24 products from Vietnam, including garments, benefit from lower tax rates as compared to other countries in the ASEAN (Association of Southeast Asian Nations) region.
Vietnam now expects textile and garment exports to South Korea, to increase by 20 percent year-on-year in the time to come. For 2018, exports are expected to increase by 22 per cent year-on-year to US $ 3.2 billion.