Home / Knowledge / News / Apparel/Garments / 'TPP may boost Vietnam apparel export by 50% in 10 years'
'TPP may boost Vietnam apparel export by 50% in 10 years'
07
Dec '15
The 12-nation Trans-Pacific Partnership (TPP) has a potential to increase the volume of exports of apparel and footwear from Vietnam by 50 per cent in 10 years, says a new report by Dezan Shira & Associates, which provides investment consultancy services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN.

Once it gets ratified by the participating countries, the TPP will eliminate 18,000 tariffs, and Vietnam will be a huge beneficiary as the relaxation of import duties will provide it with preferential access to US and Japanese markets, among others.

“In particular, the TPP will boost the country's textile industry, with a potential increase in the volume of exports of apparel and footwear by 50 percent in 10 years,” states the report.

In fact, domestic and foreign companies have already been making upstream investments, and moving their factories into Vietnam. These include Vietnam's Vinatex, South Korea's Dong-IL Corp, Japan's Tom's Limited, Taiwan's Forever Glorious, and Chinese companies such as Texhong Textile Group Ltd., Pacific Textiles Holdings Ltd., Esqual Group, Jiangsu Yulun Textile Group and Shenzhou International Group Holdings Ltd.

These investments mean that the Vietnamese apparel industry will not merely be 'cut and sew', but can secure higher added value in the supply chain, according to the report.

Recently, credit rating agency Moody's Analytics has cited Vietnam's low labour costs, improving infrastructure and scale, and wide-ranging reforms – the relaxation of ownership restrictions for public companies, real estate and banks – as vital factors in its favour over China, which currently controls around 35 percent of the US apparel market.

The Vietnamese government has targeted a growth rate of 6.5 to 7 percent in the next five years. However, to make good on its economic objectives, Vietnam has to strengthen its technological capability, institutional capacity and efficiency, and develop local private industrial and service sectors, the report stated. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: BGMEA

Apparel/Garments | On 27th Feb 2017

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: PT Indonesia Taroko Textile

Textiles | On 27th Feb 2017

Taiwan's Lealea to buy Tarako textile plant in Indonesia

Taiwan based textile manufacturer Lealea Enterprise Company, one of...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search