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Vietnam’s apparel provides a fourth of RoK market

Vietnam is the second largest textile and garment exporter to the Republic of Korea (RoK), making up one-fourth of the RoK's apparel market, after China.
Vietnam is the second largest textile and garment exporter to theRepublic of Korea (RoK), making up one-fourth of the RoK's apparelmarket, after China.

The RoK imported 627.4 million USD intextiles and garments from Vietnam in the first four months of thisyear, according to the Vietnam Textile and Apparel Association (Vitas).

The turnover marks an increase of 8.25 percent over the same period last year.

Thegrowth is part of a larger trend. After the ASEAN – Korea Free TradeAgreement (AKFTA), Vietnam's textile and garment industry sawsignificant growth.

In 2011, the sector's export turnover to theRoK was 900 million USD. A year later it increased to 1.1 billion USDand in 2013 it reached 1.6 billion USD. Last year's total of 2.4 billionUSD was a staggering 27 percent increase over that of 2013.

Thegrowth should only continue with the recently-signed AKFTA. Accordingto its open-access commitment, Vietnamese textile and garment productsthat satisfy certificate of origin norms will enjoy zero tariffs oncethe agreement takes effect from January 1, 2016. Currently, Vietnamesefirms pay a tax of 8 to 13 percent.

The FTA would be aconsiderable opportunity for both countries' enterprises, said Vitas.The RoK is Vietnam's fourth largest importer of textiles and garments,accounting for more than 10 percent of the market's export turnover,according to the Ministry of Industry and Trade.

It is forecastthat textile and garment turnover in the RoK market could reach 16.3billion USD for 2015, increasing 11.6 percent year-on-year.

The RoK currently provides nearly 20 percent of Vietnam's textiles andwith the large volume of ancillary materials it also exports.-VNA
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