Last year China’s textiles and apparel exports to the US rose by 1.6 per cent. However, Vietnam’s exports to the US grew by 14.1 per cent. The country was responsible for a large share of the overall growth in US textile and apparel imports in 2014. Vietnam’s growth as an important supplier in recent years reflects the country’s low labor costs and industry’s focus on specialisation, modernisation, and increasing value adds.

In 2013, many new textile and apparel plants began production in Vietnam, largely fueled by foreign investment stimulated by the negotiation of the Trans-Pacific Partnership agreement. In 2014, around 20 international firms invested in Vietnam’s apparel industry. US retailers and brands are continuing a long term trend of diversifying their import sources to countries such as Vietnam and India as production costs in China’s textile and apparel industry increase. But as of now China remains the largest supplier to the US.

India is the third largest supplier of textiles and apparel to the US. US total exports of textiles and apparel rose three per cent in 2014. Fabrics, fibers and yarns (except raw cotton and raw wool) and apparel together accounted for just over three-quarters of the value of US exports in 2014.