The rapid penetration of Taiwan’s domestic market with apparel imports has slowed. January through May knitted/crocheted apparel imports only increased 1.7 percent to 20,465,899 kilograms; while in 2006, imports grew 32.7 percent. The top suppliers are the Mainland, Hong Kong and Vietnam. Imports from the Mainland are up 21.6 percent and account for about half of the imports, while imports from Hong Kong have sharply declined and are down 20.2 percent year-to-date. Indonesia has emerged as a new supplier, with imports up 600 percent in January through May.

Woven apparel imports have actually declined, dropping 23.3 percent through May to 21,612,134 kilograms. This weakness was due to a 58.3 percent reduction in import volume from Hong Kong, the second largest supplier. The Mainland is the largest supplier, with import volume flat. Indonesia is also emerging as a top supplier.

Made-up imports have also been weak, falling 4.8 percent through May to 16,195,995 kilograms. A sharp downturn in imports from the Mainland has been noted, with orders being shifted to Vietnam -- imports from Vietnam are up 54.5 percent.