Home / Knowledge / News / Apparel/Garments / TPP likely to benefit Vietnam's apparel industry: Report
TPP likely to benefit Vietnam's apparel industry: Report
11
Feb '15
Irrespective of the fine print in the Trans-Pacific Partnership (TPP) agreement, expected to be signed this year, Vietnam’s apparel industry is likely to benefit at the expense of its South Asian competitors like Bangladesh and Sri Lanka, says a recent report.
 
The report ‘Trans-Pacific Partnership (TPP): Winners and losers’ released by Standard Chartered Bank, says, the extent of the TPP’s impact on the global apparel industry will, however, depend on how rules of origin (ROO) requirements are structured in the agreement.
 
Under flexible ROO – requiring that only assembly of the final product be done in a TPP country in order to gain preferential access to the US market – Vietnam’s market share in apparel could rise to about 11 per cent from the current 4 per cent by 2024, says the report. On this basis, Vietnam’s apparel exports would be close to US$ 115 billion, and it would overtake Bangladesh to become the second-biggest emerging market apparel supplier after China. Meanwhile, Bangladesh’s apparel exports would grow to $70 billion and its market share would rise marginally to around 7 per cent from the current 5 per cent. Sri Lanka’s share could decline to 0.8 per cent, with apparel exports at $9 billion.
 
The report also makes projections for 2024 if no TPP deal materialises. It says that both Vietnam and Bangladesh would have similar market share of around 8 per cent, with Vietnam having an edge at apparel exports of $90 billion compared to Bangladesh’s $85 billion. In this scenario, Sri Lanka’s share would remain stable at 1 per cent, with apparel exports of $11 billion.
 
“To prepare for a potential loss of competitiveness relative to Vietnam, Bangladesh and Sri Lanka will need to take pre-emptive action,” says the report.
 
For Bangladesh, the report suggests that it should focus on capturing the EU market share being lost by China. Further, compliance with international safety and labour standards would help it retain access to EU GSP privileges, particularly once it graduates from LDC status, and could also enable it to regain access to the US GSP agreement. In the medium term, its scale advantage should allow it to maintain low labour costs. Longer-term, Bangladesh will need to move up the value chain by focusing more on education, training and up-skilling of its labour force.
 
For the Sri Lankan apparel industry, the report says it can be protected by making further efforts to move up the manufacturing value chain, offering differentiated services to retailers, and by branding its sustainable and ethical apparel manufacturing more aggressively to attract young consumers. “It should also focus on strengthening links with non-traditional markets,” suggests the report. (RKS)
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing 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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X