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Montevideo, May 17th 2022 - 18:07 UTC

 

 

Vietnam's clothing exports boom in 2020, WTO says

Wednesday, August 4th 2021 - 07:42 UTC
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Vietnam's share of the clothing market is second only to China's since last year Vietnam's share of the clothing market is second only to China's since last year

A report issued Tuesday by the World Trade Organization (WTO) for clothing exports in the year 2020 has shown that Vietnam has surpassed Bangladesh as the second-largest global trader.

According to the study, last year Vietnamese sales totaled US $ 29 billion, an increase of 6.4 percent year-on-year.

The WTO also highlighted that in the last decade, the country's participation in the world clothing export market has skyrocketed and eventually surpassed that of Bangladesh, whose shipments decreased 6.8 percent in 2020.

Hit hard by Covid-19, Bangladesh's output declined sharply as the pandemic forced factories to close by canceling orders or delaying payments for many Western brands.

Vietnam, on the other hand, expanded production and diversified it into the segment of medium and high-priced clothing and accessories, thanks to its good management of the epidemiological situation and the modernization of the production chain.

Other factors were the stability of the national currency against the US dollar, the activation of the free trade agreement with the European Union and the reduction of operations of many global companies in China, which shifted to Vietnam.

The WTO also highlighted Vietnam's greater political and social stability against that of its competitors in the sector such as Bangladesh and India, and its citizens have greater access to education and health care.

Vietnam's market share of 6.4 % in 2020 was second only to China’s 31.6 percent. In 2019, Vietnam only had a share of 2.9 %.

According to Vietnam's General Statistics Office textile exports so far in 2021 were worth US $18.6 billion, a year-on-year increase of over 14 %.

The Ministry of Industry and Trade said some major export markets such as the U.S. and Europe have higher demand for garments and footwear amid the economic recovery and the end of social distancing, making conditions favorable for Vietnam to achieve its export target of US $ 39 billion this year.

 

Categories: Economy, International.

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