South Korea textile exports enjoy a silky touch

It will make the country Vietnam’s fourth largest export market behind the US, EU and Japan.

Vietnam is in a position to gain $1 billion from exporting textiles and garments to South Korea in 2012, according to Vitas’ chairman Vu Duc Giang.

General Department of Customs’ statistics showed that the country won more than $904 million from textile and garment exports in 2011, jumping 145 per cent on-year, providing a foundation for the sector to break $1 billion export value target from South Korea in 2012.

Giang said besides the textile and garment sector, export figures of many other sectors such as footwear and wooden furniture could be noticeably augmented in the coming years when a free trade agreement (FTA) between Vietnam and South Korea was clinched.

Besides, the sector has lured scores of investors from South Korea in the past couple of years. According to Vitas figures, South Korea is a big investor in Vietnam’s textile and garment industry with around 450 businesses capitalised approximately $1.8 billion.

Ho Chi Minh City-based Viet Tien Garment Joint Stock Company’s deputy general director Phan Van Kiet said there were multiple opportunities to boost the sector’s export value to South Korea since it recently modified its textile and garment sector structure, spotlighting hi-end market segment.
In a bid to enrich the customer pool, South Korea would continue to be one of top targets by local textile and garment firms in the coming years, according to Kiet.

In the face of rising export value from South Korea, from mid 2011 Vinatex urged its member units to prepare resources to make the most of incentives entailed by ASEAN-South Korea free trade agreement (FTA) as well as the Vietnam-South Korea FTA which is expected to be ratified within the next few years.

“Inking of Vietnam-South Korea FTA could give a ‘nudge’ to Vietnam’s textile and garment export, paving the way for firms to foster ties with South Korean peers which excel in technology and top-of-the line materials and cloth production,” said Vinatex general director Tran Quang Nghi.

Reality shows Vietnam’s Thanh Cong Group shaking hands with South Korean partner E-Land was a typically success story for cooperation in the textile and garment sector.  

Thanh Cong Group got from E-Land - a global group and a leading firm in South Korea in retail and fashion owning 99 famous fashion brands with an extensive network of 5,000 retail shops -  capital, technology, management expertise to make inroads in South Korea.

The cooperation helped Thanh Cong Group’s fashion products to surface in world large markets and deepen roots in South Korea. The group’s export revenue hit VND1.9 trillion ($90.4 million) in 2011, surging 30 per cent on-year.