Home / Knowledge / News / Apparel/Garments / Vietnamese garment firms discuss TPP prospects
Vietnamese garment firms discuss TPP prospects
03
Aug '13
Representatives of several Vietnamese garment businesses discussed the prospects for the industry at a seminar on ‘Trans-Pacific Partnership (TPP) agreement and its impact on Vietnamese garment sector’, organized by the Vietnam Textile and Apparel Association (VITAS) and the People’s Committee of the southern province of Dong Nai.
 
Participants said currently Vietnamese garments are taxed at 17.5 percent for exports to the US and joining the TPP agreement would decrease this tax rate to zero.
 
However, to enjoy the zero tax rate, Vietnamese garments would have to satisfy the ‘yarn forward’ criteria, which means that every stage of the garment production from yarn onwards, including weaving, dyeing, finishing and sewing, has to be done in Vietnam.
 
Participants said this principle may create problems for the Vietnamese garment industry, which heavily relies on fabric imports. Vietnam imports about 88 percent of its total fabric requirement, mainly from countries that are not among the ones negotiating for the TPP.
 
According to VITAS, the TPP negotiating parties are considering to include a term “supply shortage”, to allow countries with textile raw material shortage, particularly Vietnam, Malaysia and Mexico, to continue purchase of fabric from countries outside the TPP for enjoying the zero-tax facility.
 
However, the “supply shortage” would allow the zero-tax benefit only for a certain period of time, which is expected to be around three years.
 
Hence, on the expiry of the “supply shortage” period, Vietnamese garment businesses would again face difficulties, participants said.
 
They suggested that the Vietnamese garment industry needs to adopt a long-term strategy to develop fabric production in a sustainable manner.
 
In 2012, Vietnamese garment enterprises used about 6.8 billion metres of fabric, while the domestic fabric production was only 0.8 billion metres, and the companies were forced to import about 88 percent of their total fabric requirement.
 
The TPP is a proposed free trade agreement under negotiation by Australia, Brunei, Chile, Canada, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. Japan is also considering joining the TPP bloc. The TPP agreement is expected to be signed this October in Bali, Indonesia.
 
Last year, Vietnam exported US$ 17.1 billion worth of garments and textiles, with the US alone importing more than 50 percent of the same.
 

Fibre2fashion News Desk - India


Interviews View All

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Spokesperson, Hugo Boss

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Karen Lou,

Karen Lou

Australia-based Sunseeker has been creating swimwear since 1970. Sunseeker ...

Priyanka Gandhi,

Priyanka Gandhi

Established in 2016, Surat-based Shree Ganesh Yarns is a manufacturer of...

Ravi Kant Prakash,

Ravi Kant Prakash

A crucial role in the process of fabric manufacturing is played by the...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

Leave your Comments


September 2019

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

news category


Related Categories:

Advanced Search