Bloomberg
Vietnam gained more American market share last year among garment and textile supplying nations than any country except China, according to a US report.
Vietnam’s share by volume of the American market for textiles and apparel rose to 2.8 percent last year from 2.2 percent in 2006, the US International Trade Commission said in a report this week.
While China’s share of the market jumped to 40.2 percent from 35.7 percent, all other countries who supply more than Vietnam lost market share or held steady.
Last year “was characterized by a shift in US textile and apparel imports from Central American and South American countries toward lower-priced Asian suppliers,” the US International Trade Commission said in the report, posted on the agency’s Web site.
Garments are Vietnam’s second-biggest export after crude oil.
Its garment exports received a boost last year by the removal of US quotas as part of Vietnam’s accession to the World Trade Organization.
“Vietnam’s garment industry is going to catch up with other countries in terms of vertical integration,” said Chris Freund, managing director of Mekong Capital in Ho Chi Minh City, which manages funds that hold shares in two garment producers.
Heading upstream
“The industry will go more upstream over time, similar to what happened in Taiwan and the Republic of Korea,” Freund said.
“Vietnam will begin to produce yarn, which should lower costs and also make Vietnam more competitive in terms of timing.”
Measured by volume, Vietnam was the ninth-biggest supplier of garments and textiles to the US in 2007, moving up from 10th in 2006 by passing Taiwan.
Among non-Asian countries ahead of Vietnam, Mexico’s market share slipped to 5.7 percent in 2007 from 6.6 percent while Canada’s slumped to 3.6 percent from 4.7 percent.
“Mexico has lost volume in the key categories of knit and woven shirts and bottoms in recent years,” Benjamin Juarez of the agricultural attaché’s office at the US Embassy in Mexico City, wrote in a May report.
“Higher production and labor costs relative to key competitors continue to hamper the competitiveness of the Mexican apparel industry,” Juarez wrote.
Among Asian countries, Pakistan’s market share fell to 6 percent from 6.8 percent while the Republic of Korea’s slipped to 3.7 percent from 4.1 percent, according to the US International Trade Commission report.
Pakistan’s issues
“Investment in the textile sector is on the decline” in Pakistan, agricultural specialist Mohammad Shafiq Ur Rehman at the US Embassy in Islamabad wrote in a May report.
“The severe electricity shortfall from April to September 2008 will slow down industrial production while raising the cost of production and likely resulting in product quality issues,” Rehman wrote.
The All-Pakistan Textile Mills Association said last month the garment industry’s competitiveness had been hurt by higher prices for gas, which factories must use due to power outages, and by high interest rates.
While the overall volume of garment and textile exports to the US from Bangladesh, Cambodia, India and Indonesia increased in 2007, all four countries’ market shares held steady, according to the US International Trade Commission report.
India’s share by volume of the US garment and textile market was 5.1 percent in both 2006 and 2007; Indonesia’s was 3.1 percent; Bangladesh’s was 2.9 percent; and Cambodia’s was 1.7 percent.
Vietnam’s share by volume of the American market for textiles and apparel rose to 2.8 percent last year from 2.2 percent in 2006, the US International Trade Commission said in a report this week.
While China’s share of the market jumped to 40.2 percent from 35.7 percent, all other countries who supply more than Vietnam lost market share or held steady.
Last year “was characterized by a shift in US textile and apparel imports from Central American and South American countries toward lower-priced Asian suppliers,” the US International Trade Commission said in the report, posted on the agency’s Web site.
Garments are Vietnam’s second-biggest export after crude oil.
Its garment exports received a boost last year by the removal of US quotas as part of Vietnam’s accession to the World Trade Organization.
“Vietnam’s garment industry is going to catch up with other countries in terms of vertical integration,” said Chris Freund, managing director of Mekong Capital in Ho Chi Minh City, which manages funds that hold shares in two garment producers.
Heading upstream
“The industry will go more upstream over time, similar to what happened in Taiwan and the Republic of Korea,” Freund said.
“Vietnam will begin to produce yarn, which should lower costs and also make Vietnam more competitive in terms of timing.”
Measured by volume, Vietnam was the ninth-biggest supplier of garments and textiles to the US in 2007, moving up from 10th in 2006 by passing Taiwan.
Among non-Asian countries ahead of Vietnam, Mexico’s market share slipped to 5.7 percent in 2007 from 6.6 percent while Canada’s slumped to 3.6 percent from 4.7 percent.
“Mexico has lost volume in the key categories of knit and woven shirts and bottoms in recent years,” Benjamin Juarez of the agricultural attaché’s office at the US Embassy in Mexico City, wrote in a May report.
“Higher production and labor costs relative to key competitors continue to hamper the competitiveness of the Mexican apparel industry,” Juarez wrote.
Among Asian countries, Pakistan’s market share fell to 6 percent from 6.8 percent while the Republic of Korea’s slipped to 3.7 percent from 4.1 percent, according to the US International Trade Commission report.
Pakistan’s issues
“Investment in the textile sector is on the decline” in Pakistan, agricultural specialist Mohammad Shafiq Ur Rehman at the US Embassy in Islamabad wrote in a May report.
“The severe electricity shortfall from April to September 2008 will slow down industrial production while raising the cost of production and likely resulting in product quality issues,” Rehman wrote.
The All-Pakistan Textile Mills Association said last month the garment industry’s competitiveness had been hurt by higher prices for gas, which factories must use due to power outages, and by high interest rates.
While the overall volume of garment and textile exports to the US from Bangladesh, Cambodia, India and Indonesia increased in 2007, all four countries’ market shares held steady, according to the US International Trade Commission report.
India’s share by volume of the US garment and textile market was 5.1 percent in both 2006 and 2007; Indonesia’s was 3.1 percent; Bangladesh’s was 2.9 percent; and Cambodia’s was 1.7 percent.
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