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US - China Trade War Triggers High increase for textile and Clothing export from Vietnam

December 2018

Vietnamese Textile IndustryVietnamese Textile Industry

US - China trade war seems to have triggered significant increase of textile and textile products (TPT) export from Vietnam this year compared to the increase in the previous years. The increase of textile and clothing export this year is expected to reach 15% or even higher. Vietnam's Ministry of Industry and Trade released that the achievement of their textile exports in 9 months (January - September 2018) increased by 17%. In the past few years the average increase in textile exports reached 10%.

From various sources, it was reported that the export of textile and clothing from Vietnam this year was targeted to reach US$35 billion in line with the increasing number of orders, especially from the United States post-trade war. Chairman of the Vietnam Textile and Apparel Association on one occasion said that demand for exports from the United States continued to increase. This increasing trend is likely to continue in the coming years.

In addition, Vietnam-European trade cooperation (FTA) that provides market access and government support has led to continued flow of foreign investment in this country, especially in spinning and weaving, which will continue to strengthen textile and clothing industry in Vietnam.

The increase in orders from the US this year is very high along with the imposition of additional tariffs for textiles and textile products from China. According to an official report from the US Department of Commerce (USTR), America has again imposed an additional tariff of 10% on products from China, including for textiles and textile products, ranging from cotton fiber to finished clothing that goes to America with a total trade value of US $ 200 billion. because the imposition of previous tariffs as sanctions for trade that are not fair in China is considered not to improve market access. China even responded by imposing an additional 5-10% tariff on American products worth US$60 billion.

Until now, compared to some countries that export TPT to America, Vietnam's textile industry has had a positive impact on this trade war. In 2017 Vietnam's textile exports reached US $ 31 billion, up about 10% from the previous year. The main markets for TPT Vietnam are the United States, European Union, Korea, China, Japan and TPP-11 countries.