Cambodian clothing exports to the EU higher than Vietnam
Cambodian clothing exports to the EU for the first time in Vietnam beyond Vietnam, showing that Vietnam has been facing fierce competition in the EU. According to Eurostat and Trademap, the Vietnam Textile and Garment Association (VITAS) shows that Cambodia's garment exports to the EU amounted to US $ 3.70 billion, up 9.95% from the previous year (2014), accounting for 3.64% of the total imports of EU garments Exports to the EU for 3.11 billion US dollars, up 5% over the previous year, accounting for 3.45% of total imports of EU clothing. Vietnam is the sixth largest importer of the EU garment, second only to mainland China, Bangladesh, Turkey, India and Cambodia.
According to VITAS, Cambodia's clothing market in the European Union in 2010 was half of that of Vietnam, which was the first to catch up with Vietnam in 2014, as Cambodia grew steadily over the past few years. Pham Xuan Hong, chairman of the HCMC Association of Garment-Textile-Embroidery-Knitting: AGTEK and vice president of VITAS, said that Cambodia has the EU MFN tariff treatment, So many Taiwan, Hong Kong and mainland China manufacturers are set up factories in Cambodia, Cambodia garment exports are increasing year by year, in addition, Cambodian exporters often sell large quantities of general clothing products, resulting in higher export value, while its labor costs are much lower than Vietnam.
While Le Quang Hung, chairman of Saigon Garment Manufacturing Trading JSC (Garmex Saigon), said that orders from the European Union have been gradually reduced, so they are turning to the United States. Dao said that the EU economy has suffered a lot of problems such as the devaluation of the euro, EU importers to pay US dollars in Vietnamese manufacturers, Vietnamese goods become more expensive, mainly due to the depreciation of the euro. EU importers demand a price cut, otherwise it will reduce the order, or even cancel. The company said that the company's orders to the EU have been reduced, but orders from the United States increased, so the year can still achieve the target. The cost of labor in Cambodia and Bangladesh is lower than that of Vietnam.
According to Eurostat, Vietnam's export orders increased last year, while Cambodia declined slightly. Vietnamese garment exports to the EU average annual growth of 5%, lower than the national average growth rate of 10-15%, and exports to the United States is still good. According to the US Department of Commerce "Textiles and Apparel (OTarel)" (Textiles and Apparel: OTEXA) statistics, Vietnam's exports to the United States last year, clothing growth of 13.41%, reaching 11.29 billion US dollars, has become the second largest exporter in mainland China While Cambodia ranked ninth, up $ 2.54 billion, up 1.1%. Vietnam last year, total exports of textile and clothing amounted to 27 billion US dollars, up 10%.