Vietnam’s textile and garments exports to China have exponentially increased in recent years. The average annual growth of the country’s exports remained more than 20 per cent for the past three years. The import value of textiles and garments from China accounted for over 42.7 per cent of the country’s total imports and rose over 12 per cent last year.
The value of Vietnam’s exports to China is nearly four times higher than that of the Republic of Korea and nearly five times higher than that of Taiwan - the two major import markets of Vietnam in recent years. Vietnam’s fiber exports to China benefit due to a zero per cent tariff under the ASEAN-China FTA, while products from other markets have to pay a three to five per cent duty.
The Regional Comprehensive Economic Partnership (RCEP) between Asean and the countries of China, Republic of Korea, Japan, India, Australia and New Zealand is expected to boost Vietnam’s exports to China. By the end of 2017, China was among the top five consumers of Vietnam’s textile and garment products. Though Vietnam is the world’s leading textile and garment exporter Chinese products dominate the domestic market. Vietnam estimates it can export higher numbers to China from 2018.