US apparel imports down, Vietnam sole winner

While overall, US apparel and textile imports increased by 3.7 percent during the first five months of the year, May was a

particular slow month for US imports anywhere, dipping by 3.7 percent to 1.89 billion square meter equivalents (SMEs) compared with 1.96 billion SMEs a year ago.

In terms of individual sourcing countries in Asia, imports from China fell by 3.2 percent to 762 million SMEs in May but were 12 percent higher than in April. Imports from Bangladesh decreased by 5.2 percent to 127 million SMEs; from Indonesia by 9.4 percent to 93 million SMEs and from Cambodia even by 14.8 percent to 63 million SMEs.

Vietnam was the only winner in terms of an increase of apparel imports by 9.2 percent and 208 million SMEs, making the country the US’ second largest apparel importer after China. Initiatives like the Trans-Pacific Partnership with the US and Canada as well as a shift away from sourcing countries like China and Cambodia have worked in Vietnam’s favour.

With ongoing unrest in Cambodia that has already seen reduced orders from Levi’s and warnings from brands and retailers like H&M, Inditex, Puma and Gap, rising electricity costs in Indonesia and rising prices in China, Vietnam may well be on its way to emerge one day as the leader of the export pack to the US.