With Thailand not included in the TPP, Thai enterprises should enhance co-operation with Vietnamese firms to produce fabric and materials in Vietnam to take advantages of benefits brought from trade agreements.
To enjoy benefits of FTAs, including TPP, Vietnamese companies must meet product rules of origin, including yarn-forward regulations for apparel. The Thai Garment Manufacturers’ Association Trade and Investment Promotion Committee recently visited HCM City to discuss cooperation and investment in Vietnam.
The textile and apparel industries in Thailand and Vietnam should strengthen co-operation to improve competitiveness and exploit the ASEAN market, delegates said at a recent meeting held in HCM City.
Nguyen Van Tuan, deputy general secretary of the Vietnam Textile and Apparel Association, said in recent years that Vietnam had emerged as a production hub for garment and textile products.
However, Vietnam’s industry has had to import up to 85% of materials needed for production.
He said cooperation with Thailand was necessary as it has advantages in textiles, design and administration.
Phasiree Orawattanasrikul, vice chairwoman of Thai Garment Manufacturers Association’s (TGMA) Trade and Investment Promotion sub-committee, said Thailand’s textile and garment industry had an entire supply chain cycle from upstream to downstream, from yarn manufacturing to apparel manufacturing. It also includes fashion design.
Meanwhile, Vietnam has the skills and ability to become an apparel production hub for international buyers, but it lacks upstream and midstream channels, she said.
“Therefore, establishing fully vertical integrated-supply chain between Thailand and Vietnam is one of the big steps toward granting and sustaining our competitiveness,” she said.
With increasing costs in China as well as competitiveness with other industries, many garment and textile producers have shifted their production base to ASEAN countries, including Vietnam.
Read more …