TPP offers textiles and apparel huge opportunities: Vinatex Deputy Director Le Tien Truong

le-tien-truongVietnam’s textiles and apparel sector can expect the greatest benefits from TPP.  Vietnam’s US exports are currently taxed at an average Most Favored Nation (MFN) rate of 17%–18%. The agreement will reduce these taxes to zero. The TPP’s rule of origin will also promote investment in Vietnamese material production and especially in fabrics, dyes, and weaving. Vietnam’s textiles and apparel exports to the US increased by 12–13%  a year. Provided the TPP is signed soon, export growth could be maintained at 15%–20% in 2014–2017, and exports to the U.S. are likely to reach US$20 billion by 2017, before soaring to more than US$50 billion by 2025.

Mr Truong: Over the past 15 years, the group’s strategies have focused on localization, added value, labour productivity, and competition. The TPP negotiations provide fresh impetus for realising this strategy ahead of schedule. .

The group wants to be recognized as a problem solver in the global supply chain.

The TPP could improve the sector’s added value and localization rates if it successfully promotes investment in Vietnamese material zones.

Effectively capitalizing on the TPP requires certain preconditions.

Firstly, tariffs should be cut dramatically in the initial stages of the agreement to ensure investors find Vietnam sufficiently enticing. Tax reductions help investors, manufacturers, and purchasers. An unfeasible rule of origin threatens to hinder the TPP’s implementation.

Foreign investors often surpass comparable Vietnamese businesses in terms of finance, technology, and markets. They are ready and waiting to pounce on any opportunity available when the agreement is finally signed.

Policies should encourage the sector’s businesses to expand their operations and cooperate on using local materials.

Read more …

TPP offers garments and textiles huge opportunities, Voice of Vietnam, Jan 21, 2014

Ngành dệt may Việt Nam hướng tới mục tiêu tăng trưởng trên 10% trong năm 2013, Báo điện tử Đảng Cộng sản Việt Nam

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply