Analysis: Vietnam’s Apparel Exports to EU (January to May 2018)

Vietnam is on rise in its apparel exports to the 28-nations bloc, but in just volumes. Value of exports was disappointing as unit prices declined massively by 26.09 per cent. The decline in unit prices indicates that Chinese and Korean-owned factories in Vietnam are probably trying to capture large volumes of order to make a notable presence in the European market which is, until now, has been phenomenally dominated by Bangladesh.

Further, in the month of May this year, Vietnam just exported apparels to EU worth US $ 211 million as compared to US $ 200 million in April ’18. On M-o-M basis, the surge was noted by 21.36 per cent. However, if we talk about performance on Y-o-Y basis, Vietnam fell by 2.60 per cent as the country exported apparels worth US $ 216.64 million in May ’17.

However, growth perspectives for Vietnam in EU market are bright due to upcoming FTA with the Union as well as the probable graduation of Bangladesh from LDC to developing country which might snatch GSP benefit from the country shifting a major share of market towards Vietnam.

Total apparel import (Quantity) by the European Union
 6.62% (1,887.98 mn kg)

Total apparel import (Value) by the European Union
 2.10% (€ 32,115.94 mn)

Total import of Knitted Garment
Quantity
 5.22% (1,025.12 mn kg)
Value
 2.72% (€ 15,271.35 mn)

Total import of Woven Garment
Quantity
 8.32% (862.85 mn kg)
Value
 1.53% (€ 16,844.59 mn)

[The information has been extracted from EU custom site and further analyzed].

Value wise share of top exporting countries