Home / Knowledge / News / Apparel/Garments / TPP poses a challenge for Vietnam's garment sector: VITAS
TPP poses a challenge for Vietnam's garment sector: VITAS
09
Sep '13
Vietnam is one of the countries negotiating the Trans-Pacific Partnership (TPP), and the agreement throws a challenge for Vietnam’s garment and textile sector which heavily depends on raw material imports for production of finished goods, according to the Vietnam Textile and Apparel Association (VITAS).
 
Speaking at a workshop on the “TPP and its impacts on Vietnam’s textile and garment enterprises” in Da Nang city, VITAS deputy general secretary Nguyen Van Tuan said TPP poses a challenge for Vietnamese garment and textile businesses, as the industry still depends on imports of cotton, fabric and technology.
 
Of the 420,000 tons of cotton used by the Vietnamese textile industry last year, around 99 percent or 415,000 tons was imported, Tuan said.
 
Similarly, 88 percent of the 6.8 billion metres of fabric used by the garment industry last year was imported, he added.
 
Moreover, about 70 percent of the total exports were still made from cut-make-and-trim (CMT) contracts, which is a disadvantage for Vietnamese businesses wanting to benefit from the TPP.
 
This would require that local businesses make a big change to strengthen their competitiveness, by investing in cotton, spinning and weaving industries, and shift production from CMT to free-on-board (FOB), while increasing cooperation with foreign partners, Mr. Tuan said.
 
To meet the challenge of TPP, the Government should invite more foreign direct investment in the textile industry, and create favorable conditions for the production of raw materials need in the garment and textile sector, he suggested.
 
In 2012, around 4,000 textile and garment companies in Vietnam together earned US$ 20 billion, with exports contributing US$ 17.2 billion, accounting for 15 percent of the country’s Gross Domestic Product (GDP).
 
The nineteenth round of TPP negotiations ended last month in Brunei. The 12 countries negotiating the TPP agreement are the US, Canada, Mexico, Japan, Chile, Peru, Malaysia, Singapore, Brunei, Vietnam, Australia, and New Zealand. These countries spread across three continents account for about 40 percent of global GDP and about 30 percent of international trade.

Fibre2fashion News Desk - India


Must ReadView All

Ghana to be top African apparel manufacturing hub: Minister

Apparel/Garments | On 22nd Nov 2017

Ghana to be top African apparel manufacturing hub: Minister

Ghana will turn Africa’s leading apparel manufacturing hub after the...

Maintain NAFTA trucking provisions: AAFA, US trade bodies

Apparel/Garments | On 22nd Nov 2017

Maintain NAFTA trucking provisions: AAFA, US trade bodies

The American Apparel & Footwear Association (AAFA) recently joined...

Vietnam’s textile & garment exports cross $24bn till Oct

Textiles | On 22nd Nov 2017

Vietnam’s textile & garment exports cross $24bn till Oct

Vietnam earned $24.372 billion from textile and garment exports in...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Top executives
Textile industry

The foremost issue is bridging the skill gap

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Kevin Nelson
TissueGen

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

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

November 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search