Home / Knowledge / News / Textiles / Vietnamese textiles need more investment to gain from TPP
Vietnamese textiles need more investment to gain from TPP
01
Apr '14
In order to take full advantage of the proposed Trans-Pacific Partnership (TPP) agreement, which is likely to be finalized this year, Vietnamese textile and garment industry would have to invest more in domestic yarn and fabric production.
 
It is because the TPP is likely to incorporate the ‘yarn forward’ principle, wherein Vietnamese garments made using yarn and fabric made in any of the 12 TPP member countries would be able to enjoy lower tariffs for exporting to the other TPP members, including the US.
 
However, at present, most of the yarn and fabric imported by Vietnam comes from China, which is not a member of the TPP. This requires that Vietnamese firms make heavy investments in textile manufacturing, processing and dyeing sectors.
 
But, such projects do not get quick environmental clearance for the fear of pollution, and hence these projects would also need to set up waste water treatment plants, which shoot up the cost of constructing the textile plants.
 
Meanwhile, some foreign companies have moved ahead with their plans of setting up textile manufacturing units in Vietnam. Among them is China’s Jiangsu Yulun Textile Group, which is constructing a plant in Nam Dinh province at a cost of US$ 68 million. On completion by mid-2016, it would annually produce 9,816 tons of yarn and 21.6 million metres of fabric and would have capacity to dye 24 million metres.
 
But, Vietnam would need more such investments in order to take full benefit of the TPP, which is expected to reduce the tariff on Vietnamese garments for the US, Canada and other markets to zero from the current rate of 17-32 percent.
 

Fibre2fashion News Desk - India


Interviews View All

Manuj Terapanthi, Texaura

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Sunil Kumar Sharma, Loknayak JPNSSSG Ltd

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

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

Neel Sawhney, One Friday

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Fan Liyuan,

Fan Liyuan

Chinese company Jiangsu Yingyang Nonwoven Machinery, established in 1993,...

Rushiraj Mulani,

Rushiraj Mulani

The Shradhdha Group of companies was established in 2010 and is based out...

Priyanka Salot,

Priyanka Salot

The Sleep Company was established to upgrade the sleep quality of every...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Giorgio Mantovani, Corman S.p.A

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

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

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

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


November 2019

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

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search