Vietnam to become the USA's 2d largest apparel supplier |
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| Wednesday, 03 September 2008 | |
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Vietnam's new found strength was helped by a leap of almost 28% as US imports from the country hit US$1.5 bn. Moreover, this increase
occurred during a period when US imports as a whole declined by 3.7%. The 28% rise put Vietnam just behind China, which has dominated supplies to the USA for five years, as reported by Textiles Intelligence.
Growth in US imports from Vietnam was remarkable even by comparison with other major suppliers. For example, US imports from Bangladesh, in sixth place and the second fastest growing supplier, rose by just 6.1% in the first four months of 2008. Imports from China, the leading supplier, actually fell by 6.8%. Vietnam appears to have taken market share from China. In the first four months of 2008, supplies from China declined by 6.8% and the country's value share fell from 27.4% to 26.5%. The fall in China's share has coincided with a deterioration in the competitiveness of Chinese manufacturers as Chinese exports have become more expensive. One reason has been a rise in the value of the renminbi against the US dollar. Another is that Chinese labour costs have increased particularly in China's coastal regions. Raw material costs have gone up significantly as well. |
