Vietnam’s “Communist Party Electronic News” reported on February 3 that insiders in Vietnam’s garment industry pointed out that the signing of the Trans-Pacific Strategic Economic Partnership Agreement (TPP) is expected to promote the growth and sustainable development of Vietnam’s garment sector.
Le Tien Truong, vice president of the Vietnam Textile and Apparel Association, pointed out that Vietnam’s garment industry and its international competitiveness will benefit from free trade agreements, especially the TPP. This is why clothing is a priority in Vietnam’s TPP negotiations. He pointed out that after Vietnam joins the TPP, the textile industry will face three major challenges, including the pressure of reduced taxation, rules of origin and the rapid and strong investment trend of foreign investment. Therefore, the Vietnam Textile and Apparel Association recommends that Vietnamese enterprises form a close and reliable supply chain to establish competitiveness, enhance the sustainable development of Vietnam’s garment industry, and avoid being unable to take advantage of TPP preferential tariff rates due to over-protection.
According to statistics, Vietnam’s textile exports in 2012 were US$17.2 billion, accounting for 15% of Vietnam’s total exports; Vietnam’s textile exports in 2013 are estimated to have exceeded US$20 billion, accounting for 17% of Vietnam’s total exports. Nearly 60% of Vietnam’s total apparel exports are exported to countries participating in TPP negotiations, of which the United States accounts for 43%, Japan accounts for 11%, and other countries account for 4%. Le Jin Truong emphasized that the countries participating in the TPP negotiations are currently and will be the most important export markets for Vietnamese clothing.