TPP brings challenges to Vietnam's garment sector: Experts

12 Jun '13

2 min read

The Trans-Pacific Partnership (TPP) Agreement, aimed at integrating the economies of the Asia-Pacific region, would also bring challenges to the Vietnam garment sector, experts said at a conference held in Vietnam’s southern province of Tien Giang.

At the conference, organized by the Vietnam National Apparel Association and the Tien Giang People’s Committee, experts said the TPP agreement requires that Vietnamese enterprises import raw materials from TPP members, which would be a challenge as 90 percent of Vietnamese garment and textile industry’s imports currently come from non-TPP countries.

In 2012, compared to requirement of 415,000 tons of cotton by Vietnam’s domestic industry, only 5,000 tons of cotton was locally grown. Similarly, about six billion of the 6.8 billion metre of fabric used by the domestic garment industry was imported, during the year.

In view of the same, there is a need for Vietnamese garment sector to develop a support industry for domestic production of raw materials, and thus reducing dependence on imported raw materials, participants said, according to Viet Nam News.

Speakers at the conference also suggested that the Government should set up exclusive industrial zones for the garment sector, and also develop a domestic textile dyeing industry.

Some participants also said the TPP is expected to benefit Vietnam’s garment and textile sector, as it offers preferential import tax rates for Vietnam’s key export sectors, including textiles and apparels, while exporting to the member countries.

Last year, Vietnam exported US$ 17.2 billion worth of garments, mainly to the US, the EU, Japan and South Korea.

Fibre2fashion News Desk - India

More Apparel/Garments News - Vietnam...