DOCKSIDE: A cargo container ship is berthed at the Port of Los Angeles.
IMPORT & EXPORT
Vietnam’s Apparel Industry is on a Rapid-Expansion Plan
China and Vietnam are still the top two providers of apparel and textiles to the United States, but Vietnam is growing quickly as an apparel powerhouse.
During the first six months of this year, Vietnam exported 14.5 percent more in clothing and textiles to the U.S. than during the previous first six months of 2013. It went from $4 billion in apparel and textile exports to $4.65 billion.
Another country that gained a significant market share this year was Nicaragua, which saw its exports of apparel and textiles to the United States jump 7 percent during the first six months of this year over last year. The Central American country’s exports went from $660 million to $707 million.
Nicaragua has the lowest minimum wage in Central America and also has a special tariff preference level under the Dominican Republic–Central America Free Trade Agreement. That tariff preference level, which expires at the end of this year but could be renewed, allows Nicaragua to use non-regional yarns and fabrics in some of its production and still receive duty-free access for qualifying apparel.
Nevertheless, China is still the big apparel factory to the United States. During the first six months of this year, its exports inched up 2.11 percent to $21.5 billion from $21 billion in 2013.
