According to a recent report, Vietnam’s textile & garment industry has profited from China-US trade war.
This report pointed out that textile & garment export turnover increased gradually over the last 5 months, hitting a new high level of $3.16 billion in August.
Textiles & garments are currently the second largest export, besides phones, accounting for 20% out of the total export turnover in the first eight months. In 2017, this figure only reached 12,2%.
The value of this industry earned $19.76 billion in the first eight months, up 16,9%, equivalent to $2.86 billion, over the same period last year.
The US is still hanging on the top of largest export market for Vietnam’s textile and garment industry which is worthy of $9.11 billion by products during that time, up 11,9% over the same period last year and accounting for 46,1% of export turnover.
Many companies have reported on their business outcome with positive signals in the first six months. Hoa Tho Textile & Garment (HTG) reported a 329% growth rate.
The companies which gained growth rates of over 70%, including Soi The Ky JSC (STK) and Song Hong Garment (MSH). Meanwhile, growth rates of over 50% was reported from Vinatex, TNG Investment & Trade (TNG) and Damsan.
The others including Thanh Cong Textile & Garment, Investment (TCM) and Trade JSC and Gilimex (GIL) also received satisfactory business outcome.
The prosperity of textile & garment enterprises has helped increase their share prices. As of August 31, TNG price had increased by 24% from the low in July, while GIL price had risen by 30% and TCM 40%.
On September 18, after the news about the US imposition of 10% tax on $200 billion worth of Chinese products was released, the shares of garment companies continued to soar in price. TNG, for example, saw the price hitting the ceiling level of VND14,000 per share.
According to latest report of Bao Viet Securities (BVSC), it’s predicted that the US-China trade war would bring opportunities to Vietnam’s textile & garment industry.
For Vietnam’s textile and garment exports under tariff of 8-10 percent in the US market, BVSC believes that the industry is receiving the huge benefits ever from the trade war. Two reasons are mentioned as follows:
First, it’s witnessed the sharply depreciation of Chinese yuan against the US dollar, and has also depreciated against the Vietnam dong. This allows Vietnam’s garment companies to import materials from China at lower prices.
Second, there are more and more opportunities opening for Vietnamese enterprises in the US market due to the more competitive prices.
Read more: Vietnam’s Textile Industry: Fail To Reach Target
