Vietnam takes over India in apparel exports to US

NEW DELHI: After China, a small Asian country Vietnam has overtaken India in apparel exports to the lucrative US market, it shipped garments worth 4.76 billion dollars in May this year against India's exports of 3.14 billion dollars.

Out of the total 73 billion dollars annual imports by the US till May-end, Vietnam managed to capture 6.55 per cent share while China remained the largest exporter to the American market with 30.6 per cent share, a data released by the US Department of Commerce said.

Admitting tough competition from Vietnam, Confederation of Indian Textile Industry Secretary General D K Nair said: "Garment exports from Vietnam to the American market have shown an unprecedented growth of 36.39 per cent as compared to negative growth of 0.72 per cent from India in May."

On Vietnam's growth, he said cost competitiveness has given the country an edge over Indian exporters, who had been hit by rupee appreciation against dollar last year. However, the rupee has begun depreciating and situation might improve.

Industry insiders pointed out that a large number of Chinese manufacturers have shifted their base to Vietnam to benefit from low production costs there and it was pushing the country's apparel exports growth.

The neighbouring Bangladesh shipped garments worth 3.18 billion dollars to the US market while capturing a share of 4.37 per cent in the world's largest market.

Figures compiled by the US Commerce Department revealed that Mexico and Indonesia are also ahead of India, which stood at the sixth position in apparel exports to the US.