Vietnam’s apparel exports to the US may reach US$ 8.5 billion in 2013, which would be a 10.4 percent growth over US$ 7.7 billion worth of exports made in 2012, the American Chamber of Commerce in Vietnam has said.
Vietnam’s exports of textiles and apparel account for about 36 percent of Vietnam’s total exports to the US, and the growth of Vietnam’s textile and apparel exports to the US is likely to increase steadily because of the slowdown of labour cost increases (minimum wage adjustment) for 2014 compared with previous years, and the increased FDI investments in textiles and apparel supporting industries in anticipation of the Trans-Pacific Partnership (TPP), AmCham, HCM City chapter, said on its website.
Vietnam’s 2014 Minimum Wage Adjustment showed “moderation,” with a 15 percent increase compared with a 17.5 percent increase in 2013, while inflation is projected just over 6 percent, AmCham said.
Compared to Vietnam’s minimum wage adjustment for 2014 at 15 percent, Indonesian minimum wage increases for 2014 averaged 19 percent, on top of the 30 percent increases in 2013. In Bangladesh, Vietnam’s key competitor country in apparel exports, minimum wages were recently increased by 77 percent.
Amongst the US imports of textiles and apparel from the five leading importers after China, i.e. Vietnam, India, Indonesia, Mexico and Bangladesh, Vietnam is projected to have the strongest growth, and to reach US$ 16.4 billion by 2025. The projections are based only on the assumption that present trends will continue, and do not include the expected impact of the TPP, AmCham said in the statement.
Meanwhile, the Index of Industrial Production (IIP) for the past eleven months (January to November 2013) issued by the General Statistics Office of the Vietnam shows the garment and textiles sector being among the best performing sectors with an increase of 21.1 percent over the comparable period in 2012, and much greater than the overall IIP rise of 5.6 percent during the same period.