The US-China trade war had its side-effect on Vietnams textiles-garment industry with a fall in both exports and production being reported. Investments nevertheless kept pouring in.
The Vietnamese textiles and garment industry in 2019 mostly kept itself busy preparing to meet the demands of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the various free trade agreements (FTAs), and tackle the impact of the US-China trade war. A drop in orders from foreign buyers was reported by businesses.
The CPTPP officially came into force in Vietnam on January 14. It was expected to create opportunities for domestic enterprises to expand their markets, but many experts perceived it as a big challenge as well due to fierce competition and the rules of origin. The country now imports up to 99 per cent of cotton, 70 per cent of fibre and 80 per cent of fabric. Only 10 per cent of fabric is imported from Japan and countries that are part of the CPTPP, which is seen as a shortcoming.
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