Vietnam’s total export turnover for textiles and garments to South Korea in the first half of this year topped US$660 million, a 32 percent increase year on year, according to the Vietnam Textile and Apparel Association.
South Korean exports accounted for 7.5 percent of the $8.9 billion worth of total shipments by the sector, the association said.
The country also remained the market with the highest growth for the Vietnamese textile and apparel industry.
The US and EU are currently Vietnam’s largest markets for textiles and garments, followed by Japan.
Exports to the EU currently account for nearly 15 percent of the total volume, and the industry aims to make exports to Japan equal to this portion.
The South Korean market, meanwhile, will be the fourth largest exporting market of the industry, with a total export turnover of more than $1 billion, as of 2014, the association said.
The Vietnamese textile and garment industry is approaching its full-year target of exporting $19.5 billion worth of products this year, according to Le Tien Truong, deputy CEO of Vinatex.
The industry’s profits in H1 accounted for 53 percent of the full-year plan, Truong said.
Meanwhile, the domestic market posted modest growth of only 9.5 percent, the lowest in the last three years. Vinatex itself enjoyed better growth, of 11 percent, according to Truong.
The unsold inventory stock dropped slightly by 2 percentage points compared to the same period last year, with products remaining unsold for less than one year accounting for 82 percent of the total.
Truong said the industry is actively expanding into new markets such as Turkey, Africa, and the Middle East, while maintaining growth in its traditional markets of Russia, the EU, and Japan.
Local textile and garment companies meanwhile are anticipating the success of the Trans-Pacific Partnership (TPP) negotiations, which will strongly boost export turnovers to several markets, including the US, thanks to zero export duties, instead of the current 16 – 32 percent tax rates.