Denim Exports To USA By Vietnam Grow Sharply | 2014-18

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Vietnam , one of the most favourable country these days when it comes to Textile & Garments including Denim. A Country which holds 10 bilateral and multilateral trade agreements, including ASEAN Free Trade Area, five ASEAN+1 FTAs, and FTAs with Japan, South Korea, Chile , Russia and the Eurasia Economic Union and a country which is expected to execute CPTPP & EVFTA by the end of this year. Vietnam has evolved as a major denim player in past few years and expected to grow faster in coming years due to its geography and advantages due to its demographics and policies. Statistics shows that by the end of 2017, Vietnam had attracted 2,079 projects in the garment-textile sector with total capital of 15.75 billion USD, up 10 percent year-on-year.  Investors come from 57 countries and territories nationwide, with major ones from Taiwan and Hong Kong (China) and the Republic of Korea (RoK). Growth of exports of denim from Vietnam was over 25% in 2017 !

In the first six months of this year, reports have confirmed that the investment worth 2.8 billion USD in FDI was injected into Vietnam’s garment-textile industry . The Chief of Vietnam Textile And Apparel Association (VITAS) asserted that Vietnam’s garment-textile export revenue is going to hit 200 billion USD by 2035. Denim is also major part in the entire periphery of Textile & Garment and is expected to achieve an annual growth rate of 30% so far as US export is concerned . The country is also getting strong hold in EU market and post the implementation of EVFTA , the country will become stronger.

After the tariff war between US and China , a substantial production shift in Vietnam is expected and if the trade war remains for longer time , China’s loss will be Vietnam’s gain. In this report , we’ve analysed the denim exports of Vietnam to US from 2014 to June 2018 and it gives an idea how the country is growing rapidly.

TABLE OF CONTENTS

Table Showing Export Of All Denim Apparel To USA ( Million Pcs)  For 2014-18
Graph Showing Export Of All Denim Apparel To USA ( Million Pcs)  For 2014-18
Table Showing Average Price Of All Denim Apparel To USA ( USD/Pc) For 2014-18
Graph Showing Average Price Of All Denim Apparel To USA ( USD/Pc) For 2014-18
Table Showing Gowth Rate Of Denim Exports To USA From 2014 To 2018
Graph Showing Gowth Rate Of Denim Exports To USA From 2014 To 2018
Table Showing Comparision Between Mens and Womens Denim Exports To USA ( Million Pcs) For 2014-18
Graph Showing Comparision Between Mens and Womens Denim Exports To USA ( Million Pcs) For 2014-18
Table Showing Average Price of Mens and Womens Denim Exports To USA ( USD/Pc) For 2014-18
Graph Showing Average Price of Mens and Womens Denim Exports To USA ( USD/Pc) For 2014-18

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Export Of All Denim Apparel To USA ( Million Pcs)  For 2014-18

Vietnam has been on growing track since 2014 and post 2016 , it has been growing by leaps and bounds. In the year 2014 , the total export of denim to USA was 18.95 million pcs which grew by 1% in 2015 and reached upto 19.13 million pcs. 2016 was the year which saw a first major jump in terms of growth percentage i.e, 8% and the export figures were reached at 20.65 million pcs . The growth rate has been multiplied and was close to three times to 25%+ in 2017 . The total export of denim in 2017 reached at 25.37 million pcs . The first half of 2018 has shown a very encouraging figure of 16.66 million pcs and if the country keeps the same pace , the export figures are expected to cross the benchmark of 32 million pcs for year 2018 . The growth rate could be seen in table #3 .

Year

Denim Apparels ( Million Pcs)

2014

18.95

2015

19.13

2016

20.65

2017

25.37

2018( Till June’18)

16.66

2018*( Projected)

32.64*

Denim Exports To USA By Vietnam | 2014-18 - Denimsandjeans.com

Average Price Of All Denim Apparel To USA ( USD/Pc) For 2014-18

The average price shown an inconsistent trend over the years and has been changing each year. However years 2015,2016 and 2017 look little consistent as there were very minor variances observed in these years. In 2015 ,2016 & 2017 , the average price were USD8.48/Pc, USD8.57/Pc and USD8.39/Pc respectively. In 2018 , the price has increased by approx. USD 1 and reached to USD9.32/Pc which is close to the average price of the year 2014. Vietnam needs to become more competitive in terms of price as countries like Cambodia and Bangladesh have been offering the denim apparel at a very competitive price . However, we need to also remember that Vietnam is offering more value added products than these countries.

Year

Average Price ( USD/Pc)

2014

9

2015

8.48

2016

8.57

2017

8.39

2018

9.32

Denim Exports To USA By Vietnam | 2014-18 - Denimsandjeans.com

Growth Rate Of Denim Exports To USA From 2014 To 2018

Year

Growth ( %)

2015

1%

2016

8%

2017

23%

2018*

31%

Denim Exports To USA By Vietnam | 2014-18 - Denimsandjeans.com

Comparison Between Men’s and Women’s Denim Exports To USA ( Million Pcs) For 2014-18

We can immediately understand that Vietnam is more into exports of Women’s Denim Garment than Men’s. In 2014 , the ratio of Mens: Womens was 41:59 however year after year , the ratio inclined towards Women Denim Export. In the 1st half of 2018 , the share of Men’s denim in total export is only 28% however Womens denim accounts for 72% in the total export.  So far as the average price of both the categories are concerned , Women Denim is cheaper than Men’s. In 2018 , the men’s denim average price was USD9.68/Pc however Women’s Denim was USD9.2/Pc.

Year

Mens Denim ( Million Pcs)

Womens Denim ( Million Pcs)

2014

7.7

11.24

2015

5.75

13.38

2016

6.32

14.16

2017

8.52

16.73

2018

4.61

11.71

2018*

9.22

23.42

Denim Exports To USA By Vietnam | 2014-18 - Denimsandjeans.com

Average Price of Men’s and Women’s Denim Exports To USA ( USD/Pc) For 2014-18

Year

Mens Denim ( USD/Pc)

Womens Denim ( USD/Pc)

2014

9.17

8.8

2015

9.02

8.25

2016

8.99

8.39

2017

8.6

8.28

2018

9.68

9.2

Denim Exports To USA By Vietnam | 2014-18 - Denimsandjeans.com

There is lot to come for Vietnam , recently Chinese Denim Companies PROSPERITY got the final nod for their factory in Vietnam . The Investment has been constantly flowing into Vietnam from Hongkong , South Korea and Canada. Korean company TCE is in process of expanding three times the size. The country needs to strengthen its capacity not in terms of finished goods but also in terms of raw material as well . Hopefully after the implementation of CPTPP and EVFTA , we will see a huge expected jump in the investment and exports from Vietnam.

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