Vietnamese garment has the opportunity to expand its market share in the US when China's leading position of exporters of garments to the US has dropped due to the Covid-19 pandemic and the US-China trade war.
Over the weekend, an article on the South China Morning Post titled China is no longer the top clothing exporter to the US when Vietnam wins market share, saying that the Corona virus as well as the US-China trade war has prompted boosting Vietnam's garment exports to the US, while the share of Chinese apparel in the US plummeted.
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Citing data from the US Department of Commerce, news articles, the total value of apparel imported from China into the US decreased from nearly 30% in 2019 to 20% in the first half of this year and is now equal to Vietnam after the S-shaped country improved its market share increased from 16% to 20%.
Import more goods from Vietnam than China
Specifically, a survey by the American Fashion Industry Association survey of 25 executives of top US fashion companies in the second quarter of this year showed that 29% said they imported more from Vietnam than China this year. . This rate last year was 25%. Notably, about 70% of experts interviewed with the association also forecast that clothing imports will continue to decline from China until 2022.
The US Department of Commerce data shows China contributed at least 30% (in volume) of US apparel imports in the first half of this year. Meanwhile, the Ministry of Industry and Trade of Vietnam said that as of July, many textile and garment enterprises had almost no orders for the last 2 quarters of the year for high-value products such as suits, high-end shirts, while In the second quarter, the price dropped sharply due to the oversupply in the world, which is considered as a strength for many garment enterprises.
Due to the serious impact of the Covid-19 epidemic, data from the General Department of Customs, in the first 6 months of the year, the US was still the largest import market for textiles and garments from Vietnam with US $ 6.2 billion, down 12%. compared with the same period last year.
The US market currently accounts for 35% of the total export turnover of Viet Thang Jean Co., Ltd. Mr. Pham Van Viet, Chairman of Viet Thang Jean Co., Ltd., said that Vietnam's clothing products exported to the US are approaching the same products of China in the US market is not wrong.
However, he noted that Chinese goods exported to the US fell sharply due to the reduction in clothing purchases by Americans by 80% during the pandemic.