Vietnam may soon emerge as the largest apparel exporter to the USA once COVID-19 subsides. After analysing the apparel trade trend in the first 2 months of 2020 and forecasting for rest of the year, Team Apparel Resources makes this bold statement.
In Jan.-Feb. 2020, Vietnam exported apparels worth US $ 2.38 billion to USA, marking 3.50 per cent growth. This accounted for 18.80 per cent of total apparel import done by USA.
The share of Vietnam in the US apparel market was 16.17 per cent in the corresponding period of 2019 and this indicates the share has significantly surged in 2020.
On the other hand, China, the largest apparel exporter to the USA, shipped apparels worth US $ 2.69 billion with a drastic fall of 40.66 per cent. China accounted for 21.25 per cent of total apparel imported by USA in the first 2 months of 2020.
China’s share has reduced massively as it was 31.92 per cent in the same period a year earlier.
COVID-19 outspread has caused a major setback for the Chinese shipment coupled with trade war which is collectively deciding the business remapping now. Adding to this, according to various reports, buyers are moving away from China and finding alternative destinations to place orders.
Not just buyers, a great number of US firms located in China have also decided to leave the country. According to a survey conducted by QIMA recently, about 80 per cent of the US companies will leave China.
Furthermore, the prediction will come true because of the fact that USA will now require less quantities of apparel for some months due to closure of stores, piled up inventories and changing consumerism post COVID-19, which will directly reduce the bulk order quantities China used to receive from the USA-based buyers pre COVID-19.