South America is regarded as a potential market for Vietnam’s textile and apparel
Relevant people said that even though trade activities between Vietnam and South American countries have increased recently, the market potential has not been fully realized, especially in the textile and clothing industry.
With a population of more than 437 million and a relatively high per capita income, South America is regarded as a very developing fashion market. However, there are still few companies and consumers in South America who have a full understanding of Vietnamese fashion products.
In addition, Vietnam’s textile and garment industry is in the process of rapid development and can meet large orders with higher requirements from different markets. In recent years, the country’s annual textile and apparel exports to Brazil have ranged from US$150 to US$200 million, exports to Chile have ranged from US$70 to US$90 million, and exports to Peru have ranged from US$30 to US$40 million.
Local textile and clothing imports (cotton mainly comes from Brazil) are about US$300-500 million.
LeHoangTai, deputy director of the Trade Promotion Department of the Ministry of Industry and Trade of Vietnam, said that the quantity and amount of Vietnamese textile and apparel exports to the South American market are still limited.
LeHoangTai pointed out: “There are many reasons for restrictions, such as geographical location, cultural differences, lack of production capacity and demand information of both companies, and effective trade promotion activities. . In addition, some South American economies are also less open.”
Truong VanCam, vice chairman and secretary-general of the Vietnam Textile and Apparel Association (VITAS), said that Vietnamese companies have little understanding of the national culture, consumers, customs and habits of South American countries. , and vice versa. In addition, many South American countries are major textile and apparel production countries, indicating that they have both cooperation and competition with Vietnamese textile and apparel enterprises.
After the COVID-19 epidemic, the supply of raw materials and import and export markets must be diversified, and the demand for reshaping the supply chains of enterprises in Vietnam and South American countries is still high.
The two parties are currently working hard to form a supply chain between local Vietnamese textile enterprises and the South American market, giving priority to cooperation in the fields of raw materials, weaving, fabric dyeing and finishing, and adopting Sustainability standards ensure consistency in working conditions and labor standards.
It can be seen that it is necessary to launch a free trade agreement between the Southern Common Market (also known as MERCOSUR) and Vietnam as soon as possible to promote local textile enterprises in Vietnam and South America. Cooperate and develop countries to achieve mutual benefit and win-win results.
In addition, market trend information is also needed to directly connect Vietnamese textile and garment enterprises with South American partners. Truong Van Cam added that trade promotion missions should be organized in the region to attract more investors.
The Vietnam Trade Office in South America stated that after the COVID-19 epidemic, South American countries have been trying to reshape the supply chain and are committed to diversifying the supply of imported goods. This It will increase opportunities for Vietnamese enterprises and industries. Including textiles and clothing, as one of the keys to promoting trade and increasing influence in South America, it must gradually increase its market share and export value in the region.
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