Composite Fabric,bonded fabric,Lamination Fabric Lamination Fabric News Investment in Vietnam’s garment industry will change the industrial chain pattern

Investment in Vietnam’s garment industry will change the industrial chain pattern



At present, Vietnam’s textile processing plants can only meet 1/5 of the country’s huge garment industry processing needs. As the Trans-Pacific Partnership (TPP) agreement negotiations become increa…

At present, Vietnam’s textile processing plants can only meet 1/5 of the country’s huge garment industry processing needs. As the Trans-Pacific Partnership (TPP) agreement negotiations become increasingly in-depth, more and more foreign investors are targeting opportunities to invest and build factories in Vietnam to enjoy the export tax benefits brought by the future TPP agreement.
TPP negotiations include 12 countries including the United States. According to the agreement, clothing produced in Vietnam and exported to the United States and other member countries will gradually enjoy zero tariff treatment, but its intermediate products, such as fabrics, must be produced in Vietnam or other TPP countries. production, which naturally excludes China.
This seems to be an excellent export benefit for Vietnam. However, thousands of domestic small and medium-sized garment factories still rely heavily on China or other Southeast Asian countries. They cannot ensure that they can take advantage of the TPP and enjoy zero tariffs.
The HoGuom garment factory in Hanoi produces 25 million pieces of clothing every day. The clothes are marked “Made in Vietnam”, but most of the raw materials are imported from China, because local raw materials are not only expensive but also of poor quality. Even some raw materials such as zippers are difficult to find locally. They have to contact factories in Ho Chi Minh City, Da Nang City, and even mainland China and Taiwan to obtain samples, so it takes a long time. So said Phi Ngoc Trinh, the factory’s vice president.
Today, Vietnamese enterprises without investment funds can only wait anxiously for a large number of domestic or foreign textile factories to invest here to improve the domestic textile industry chain and enhance self-sufficiency.
For many years, Vietnam has been at the end of the global clothing production chain: cutting, sewing and exporting.
Dang Phoung Dung of the Vietnam Textile and Apparel Association said that because Vietnam plays a small role in the global supply chain, the added value of its products is also very low. In addition to having a large amount of cheap labor, it has almost no influence on the world supply chain. As labor costs become more and more expensive, this advantage is also weakening. Although the TPP agreement will bring a large amount of tariff reductions to Vietnam’s exports, making up for the adverse impact of rising labor costs on exports, the question is whether this advantage can last. how long. How to truly improve Vietnam’s value in the garment industry chain is a topic that needs to be explored together by everyone. Investment in Vietnam’s garment industry will change the industrial chain pattern

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Author: clsrich

 
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