Hanoi (VNA) â Vietnamâs garment and textile sector is still enjoying good growth in exports to the US market even without the Trans-Pacific Partnership (TPP), according to Le Tien Truong, Director General of the Vietnam National Textile and Garment group (Vinatex). While the sector is forecasted to benefit greatly from the TPP, it has so far thrived without TPP with Vietnam holding the second-biggest market share in the US and Japan. Those two countries are also the two main export markets of Vietnamâs garment and textile. Enterprises in the sector have continuously made investment in machines and technology to improve their productivity, reduce cost, thus increasing their competitiveness in the two markets. Truong said TPP only provides one more favourable condition for exports. Truong Van Cam, Vice Chairman of the VietnamÂ TextileÂ andÂ Apparel Association (VITAS) highlighted potential for Vietnamâs garment and textile export in other markets, including the US. Apart from … [Read more...] about Textile – garment exports expected to grow without TPP
VietNamNet Bridge - US capital continues flowing into Vietnam in anticipation of the opportunities to be brought by TPP (Trans Pacific Partnership) and other free trade agreements (FTAs). Just after six months after opening, a bonded warehouse in Long Binh Industrial Zone in Dong Nai province is at full capacity. It supplies dyes and chemicals, and is run by Huntsman Textile Effects.Huntsman Textile Effects’s president Paul G. Hulme said the company set up a bonded warehouse there so as to be able to provide dyes and chemicals more rapidly. The company may consider expanding investment in the future, depending on demand in the country. He is optimistic about business performance in Vietnam, as the demand for products is expected to increase when TPP takes effect and more capital will be poured into textile projects. Vietstock quoted a report by Savills released in late September 2015 as saying that foreign direct investment (FDI) in Vietnam in the first half of 2015 … [Read more...] about US investors pour money into Vietnam’s textile & garment industry
VietNamNet Bridge - Many small textile and garment companies plan to merge with others, while big companies will have to try every possible means, including lowering selling prices, to retain clients. The director of a garment company which has been making products for US and Japanese partners for the last 10 years admitted that the company was facing difficulties because the number of orders was ‘dramatically low’ last year.In 2014, seeing that market demand was increasing, the company decided to set up a new factory in Binh Duong province. However, the number of orders has not increased as expected. Many small companies in the north, south, as well as HCM City and Tay Ninh have decided to put their workshops up for sale because things are getting more and more difficult for them. The prices offered are between VND60 million and VND35 billion, depending on the operational time and factory scale. Many small textile and garment companies plan to merge with others, … [Read more...] about Misfortunes still sting textile & garment sector in 2016
In 2005-2016, Vietnam was one of the countries pioneering in global economic integration. It did not skip any free trade agreement (FTA), meaning that Vietnam has exploited all possible FTAs, at least in the medium term. However, analysts said that even if the agreement became realistic, TPP would not be a ‘magic wand’ that helps the industry skyrocket. With the ‘yard forward’ principle, Vietnam’s textile and garment exports would enjoy preferential tariffs if they use input materials sourced from TPP member countries. A research work by Vanzetti & Pham in 2014 showed that Vietnam only imports 5.3% of input materials from TPP member countries. This means that if the figure cannot improve, only 5.3% of Vietnam’s textile & garment output would enjoy preferential tariffs under TPP. Analysts have every reason to doubt Vietnam would not be able to get many benefits from TPP. In fact, Vietnam did not carry out any research work on the quantitative … [Read more...] about What’s the future for textiles & garments without the TPP?
VietNamNet Bridge – Vietnam’s textile and garment industry has attracted the majority of the biggest foreign direct investment projects as investors want to build factories in Vietnam to capitalize on opportunities from the Trans-Pacific Partnership (TPP). According to Nikkei Asian Review, Vietnam’s competitive advantage has been strengthened to become the world’s export center, attracting foreign investment flows, including those from Japan. Many manufacturers hope to have stronger motivation after the TPP, of which Vietnam is a member. Experts said that the TPP will help boost production and exports in Vietnam and enhance its maritime trade with the US. For textile companies, Vietnam’s skilled workers are a plus even when the labor costs are higher than that of Bangladesh and Myanmar. Speaking at the Vietnam-Japan Investment and Trade Promotion Forum held last year, Mukuta Satoshi, senior managing director of Keidanren (Japan Business Federation), … [Read more...] about Vietnam’s textile-garment industry in the post-TPP period