Exports of textile and garment industry has many advantages in 2016
The garment industry is now operating 6,000, attracting around 450,000 employees both directly and indirectly. The industry is said to enjoy the many benefits of Korean exports to the free trade agreement Vietnam – Korea (VKFTA) effect.
The garment industry is now operating 6,000, attracting around 450,000 employees both directly and indirectly. The industry is said to enjoy the many benefits of Korean exports to the free trade agreement Vietnam – Korea (VKFTA) effect.
It is expected that, in 2016, South Korea will reduce tariffs to 0% for imports of garments from Vietnam. However, how much of the total 6,000 companies active in the textile industry actually benefiting from VKFTA ?.
JSC TNG Investment and Trading is a major exporter, closed Thai Nguyen province, with 17 garment factory system, exports stood top of this province (about 70 million years 2014), but the proportion of exports to Korea are very low compared with the traditional markets of the business.
Mr. Nguyen Van Thoi, Chairman Board of Directors TNG said company traded exports to South Korea, but insignificant when compared with the US, EU and Japan. Therefore, VKFTA been signed, the textile industry is a good news, because the motivation for export tax reduction, but with no benefit TNG own much of the structure due to the export market, Korea is not important point.
Some other businesses are Ltd. Dong Feng (Pacific) said, at this point, the company did not export to South Korea, but in the strategy to expand the market and before the opportunity is opened, Public Investment companies will have to step up tables all exports to this market.
With more than 200 corporate members, the Textile – Clothing – Embroidery knit Vietnam also share, the number of enterprises with trade, exports of goods to South Korea can count on the fingers. Mr. Bui Trong Nguyen, General Secretary said, the Korean market is relatively strong in fashion, most businesses are supplying garments to the market, all of the supply chain in this country.
Therefore, current apparel exports from Vietnam to Korea mainly from the Korean businesses are investing in Vietnam and this is the part most benefited both markets, tax policy when signing VKFTA …General Director of JSC Production – Trade – May Saigon, Nguyen An also said that compared to the market as the US, EU, South Korea, the export market is relatively small for garments of Vietnam. Korean businesses are mainly placed orders fashion, with low numbers, about 2,000 -5000 product.
Commenting on the opportunity to increase exports of textiles, as the tariff lines to be reduced to 0% when VKFTA effect is completely accurate. But, looking at the number of businesses that are exported to South Korea see very clearly, the advantage is tilted strongly in the Korean textile firms have investments, made in Vietnam. Vietnam enterprises have textile exports to South Korea, but the actual contribution to the total turnover of nearly 2.4 billion US dollars in 2014 is quite limited.
Mr. Nguyen Van Thoi said that most Korean textile firms investing in Vietnam with large scale, from a few thousand to tens of thousands of workers, have great advantages in the suction line from parent company South Korea.
Some Korean FDI in 2014 has resulted in very impressive exporters and it is resourced to contribute to export Scores of Vietnam’s garment sector. Topping the list is the Unico Global Ltd Vietnam (100% invested by South Korea, specialized in manufacturing garments for export, exports over 20 million US dollars), Ltd. PS VINA (turnover export of 17 million US dollars), Ltd. Eland Vietnam (over 15 million), Ltd Eins Vina …
