Vietnam's garment exports to UK rise to $92.4 mn in August 2022: GDVC

13 Sep '22

2 min read

Pic: Shutterstock/ Aritra Deb

Vietnam has exported garments worth $92.4 million to the UK in August 2022, which is an increase of 88.6 per cent compared to the corresponding month last year and 3 per cent month-on-month, according to data from the General Department of Vietnam Customs (GDVC). The surge in exports can be attributed to the UK-Vietnam Free Trade Agreement (UKVFTA).

Despite being included in the top 10 biggest markets for Vietnam’s garment exports, the UK accounts for less than 2 per cent of Vietnam’s total export value. Lower tariffs enabled by the UKVFTA have made it possible for Vietnam to develop its share in the market.

Around 42.5 per cent of Vietnamese textile and garment exports will be liberalised at entry and some garment goods will have their tariffs removed after six years as per the UKVFTA.

However, textile industry regulations introduced by the European Union (EU) such as using green products, replacement rates, and opting for sustainable fashion instead of fast fashion make it more difficult for Vietnamese apparel goods to gain a foothold in the European market.

Total earnings from garment exports for the Southeast Asian nation added up to $26.3 billion for the last eight months — 24.3 per cent more than those for the same period in 2021, as per Vietnamese media reports.

At present, Vietnam is the third biggest garments exporter in the world and among its main markets are Europe, the US, Japan, and South Korea.

Fibre2Fashion News Desk (NB)

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