HÀ NỘI – Việt 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, Việt 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 Việt Nam were the two largest garment suppliers to the South Korean market, accounting for 34.46 per cent and 32.67 per cent, respectively.
Việt Nam’s garment exports to this market accelerated rapidly reducing the gap between market share of China and Việt Nam on the South Korean garment market at 40.18 per cent and 29.52 per cent, respectively, three years ago.
According to Việt Nam’s General Department of Customs, South Korea became the fourth largest export market of Việt 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 Việt Nam’s garments and higher spending of consumers on this market.
In addition, tariff preferences from the Việt Nam – South Korea free trade agreement encouraged Việt Nam’s textile and garment products entering the South Korean market, the ministry said. According to the FTA, 24 products of Việt Nam enjoy lower tax against other countries in the ASEAN region.
By the end of this year, Việt 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.
Việt 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, Việt 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 Việt Nam’s total export value of goods to this market.