Home / Knowledge / News / Textiles / 'TPP may pose problems for Vietnam textile industry'
'TPP may pose problems for Vietnam textile industry'
22
Mar '16
Despite the large number of advantages associated with the Trans-Pacific Partnership (TPP) pact, it poses its own set of problems for the local Vietnamese garment sector, according to a Vietnamese newspaper.

Owing to the clauses in the pact, Vietnamese garment manufacturers, who largely import raw materials from non-TPP countries, will be forced to source from local manufacturers. The local raw materials industry is largely underdeveloped, and will require huge investments for producing sufficient, good quality raw materials. Besides, sustainability requirements during production are also difficult for the local producers to match.

The Yarn Forward rule requires the TPP member countries to source raw materials for garment production either locally or from other TPP members. However, approximately 60 to 75 per cent of the total raw materials used in garment production in Vietnam are imported from non-TPP countries.

Vietnamese apparel manufacturers will not be able to take the benefit of TPP, if they do not work towards the development of the local supply chain. The local supply chain largely remains underdeveloped. Besides, sustainability issues plaguing the local supply chain also remain a major concern in the international community.

Additionally, Vietnam has seen the highest amount of foreign investments in recent years. Non-TPP countries like China, Japan and South Korea are investing in manufacturing in Vietnam in order to benefit from the pact.

This may result in majority of the tax benefits being received by non-TPP countries, while the local supply chain continues to remain underdeveloped.

The implementation of TPP will take almost two more years, as member countries seek approval from their respect governments. Meanwhile, Vietnam will have to pay attention to all the concerns to take full advantage of the pact. (MCJ)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 27th Apr 2017

Maharashtra govt working on second textiles policy

The textiles department of the government of Maharashtra is working...

Apparel/Garments | On 27th Apr 2017

EC takes action to make garment sector more sustainable

The European Commission (EC) has presented a set of focused actions...

Textiles | On 27th Apr 2017

Seven new organisations join ZDHC Programme

The Zero Discharge of Hazardous Chemicals (ZDHC) Programme from...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Rupa Sood and Sharan Apparao
Nayaab

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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