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

Pic: Shutterstock

Textiles | On 12th Apr 2021

Singapore becomes first RCEP participating country to ratify agreement

Singapore has ratified the Regional Comprehensive Economic...

Pic: Shutterstock

Textiles | On 12th Apr 2021

World economy stumbling towards two-track recovery: Report

The world economy is facing sharply divergent growth prospects across ...

Pic: Shutterstock

Textiles | On 12th Apr 2021

2021 to be critical for European textiles and clothing sector: Euratex

2021 will be a critical year for the European textile and clothing...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchain is not a silver bullet for each and every problem in supply...

Textile Industry, Head honchos

Textile Industry
Head honchos

Estimate loss of $8-$10 billion in turnover

Chendhuran Sundar,

Chendhuran Sundar

Headquartered at Singapore, Crocodile is a global fashion and lifestyle...

Nina Smith,

Nina Smith

GoodWeave International, a nonprofit working to end child, forced and...

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha &amp; Jigar blends India's unique handcrafts...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

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


April 2021

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


Advanced Search