Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

US apparel imports shift from China to Vietnam

With a rise in wages among apparel factory workers in China, American apparel imports from the country have slowed down. Apparel imports were flat for the 12-month period ending in February this year, rising only 0.26 per cent to $29.6 billion.

 

The industry is seeing a sharp shift in sourcing from China to other countries like Vietnam with many US apparel companies and designers shifting their production to Vietnam, where minimum wages are $73 dollars to $111 dollars a month, depending on the region. That is more than half of the $300 dollars monthly minimum wage in China’s industrial hub of Shenzhen, close to Hong Kong. During the 12-month period ending in February, apparel imports from Vietnam were up 14.2 per cent to $8.3 billion.

 

Another reason behind the shift is the availability of skilled workers who are responsible for making Vietnam’s apparel sector, the country’s leading export industry. US-based manufacturers are eyeing an opportunity when Vietnamese-made clothing can be brought in duty free because it is part of the Trans-Pacific Partnership, a group of 11 countries working on a free-trade pact with the United States.

 

American apparel imports from Bangladesh, another low-wage country, were up 9.3 per cent to $4.9 billion. Mexico, which in 2009 was among the top four apparel providers to the US but now at the seventh position, saw its exports remaining flat despite the two countries having a free-trade agreement. Mexico’s apparel exports totaled $3.68 billion during the 12-month period ending in February.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo