Thai textile and clothing companies plan to transfer production lines to Vietnam

According to a report by Vietnam’s “People’s Daily” on October 28: The Thai Garment Manufacturers Association said that the EU’s import tariffs on Thai textile and apparel products will increase from the current 9.6% to 12%, which will make Thai textile and apparel products in Loss of competitiveness to a certain extent. In response to this situation, Thai textile and apparel companies are planning to transfer production lines to neighboring countries such as Vietnam and Myanmar that have low labor costs and enjoy the Generalized Preferential Tariff System (GSP). Currently, about 30 Thai textile and apparel manufacturers have set up second production plants in neighboring countries, mainly in Vietnam and Cambodia.
Vietnam still enjoys the benefits of the generalized preferential tariff system and is negotiating with the EU on the “Vietnam-EU Free Trade Agreement” and may soon become a member of the “Trans-Pacific Strategic Economic Partnership Agreement”. Therefore, Thai clothing manufacturers The association views Vietnam as a very attractive investment destination.