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

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Courtesy: Bombay Dyeing

Textiles | On 3rd Dec 2016

Bombay Dyeing to focus on retail; stops textile production

Bombay Dyeing, a Wadia group company, has decided to shift its focus...

Apparel/Garments | On 3rd Dec 2016

Q3FY17 net earnings slip 26.8% at denim retailer Guess

In the three months ended October 29, 2016, net earnings at denim...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eric Scholler
Groz-Beckert

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search