Mexico is currently one of Vietnam's leading trading partners in the Americas region, playing an important role as a gateway for Vietnamese goods to penetrate deeply into the domestic market of these regional countries.
According to the statistics of the General Department of Customs, the total bilateral trade turnover between Vietnam and Mexico in recent years has been continuously improved and reached over 3.4 billion USD in 2018. In which, export of goods textiles and footwear accounted for 12% of the total export value. Currently, exports of goods in general and garments in particular of Vietnam to Mexico are still low and not commensurate with the potential of the two countries. Therefore, two-way trade, especially textile and footwear trade, is expected to have a breakthrough growth in the coming time, thanks to the CPTPP Agreement.
In particular, in the coming months, Vietnam's textiles and footwear have an opportunity to increase strong exports to Mexico, when they announced they would impose import duties of 25% -30% on textile products. and footwear from countries that do not have a free trade agreement (FTA) with Mexico. It is known that this tax increase move has been applied for 6 months against unequal trade acts and subsidies. In addition, it is likely that the quota regime will also be applied to limit cheap imported textiles and garments into this market.
Vietnam is currently the 4th largest garment supplier (HS61 & 62) in the Mexican market, with a market share of 6.92%. With the advantage of tax incentives from CPTPP and if Mexico officially imposes a 25% - 30% tax on imported garments from countries without FTAs with this country, it is certain that Vietnam's garment exports will strong breakout in Mexico in 2019.
However, Vietnam's garment exports to Mexico will face many challenges. Firstly, it is difficult to transport. However, Mexico is still considered a potential market, if the enterprise is proactive, flexible and interested in geographical conditions affecting delivery time; and choose strong product lines to compete with countries that also export to Mexico.