Vietnam’s textile and apparel exports to the world have started to show signs of recovery in 2020, despite still being at negative side from a year earlier.
The textile and apparel exports declined on Y-o-Y basis by 7.40 per cent and 10.50 per cent in July ’20 and August ’20, respectively. Markedly the drop in exports was huge in preceding months; i.e. June ’20 and May ’20 when overall export dropped in dollar terms by 29.80 per cent and 30.90 per cent from the same months of the last year.
The struggle of Vietnam in its potential markets – Japan and South Korea – continues due to slow market recovery in these countries, while the exporters seized more market share in its top market – USA.
Cumulatively in Jan.-Aug. ’20 period, Vietnam declined by 11.20 per cent in its textile and apparel exports but its market share has increased, following neighbouring countries’ drastic fall in the global market.
According to OTEXA data, Vietnam’s share to the US apparel market has increased from 15.63 per cent in Jan.-Aug. ’19 to 20.24 per cent in the same period of 2020.
Compared with China, Vietnam’s performance is significantly great in a COVID-19 hit year. In the same period, the market share of China in USA plunged 30.70 per cent to 22.70 per cent, bringing it almost equal to what Vietnam achieved.
As far as Europe is concerned, Vietnam has signed an FTA with EU which came into light on 1 August this year and it’s certain now the exports of clothing and textile from Vietnam are supposed to grow in EU market in following months, provided no major disruption takes place in Europe due to second potential wave of COVID-19.