VN textiles and garments exports to US increasing with or without TPP

Vietnam’s biggest export market, the US which consumes 50 percent of Vietnam’s total textile & garment export turnover, if TPP takes effect, analysts estimate that Vietnam’s textile & garment export turnover would increase by 30-40 percent in the first year of the agreement implementation, and would increase by twofold after three to four years.

In October 2016 alone, Vietnam exported $9.476 billion worth of textile & garment products to the US. This means that export turnover would reach $16 billion by 2018, an increase of $3 billion, and to $20 billion by 2020.

However, the figures may be unattainable after Donald Trump, who takes office as the 45th US President on January 20, 2017, is against the TPP because of concern about jobs for US citizens, as the domestic industry will have to compete with imports from TPP countries.

Truong Van Cam, Vitas’ secretary general, said that Vietnam will still see its textile & garment exports to the US increasing, with or without TPP.

In recent years, the export turnover to the market has been growing steadily by 12-13 percent per annum, while the US import turnover has been growing by 3 percent only. Vietnam’s products just account for 9 percent of the US total textile & garment imports.

According to Le Quoc An, a textile & garment expert, and former chair of Vitas, there are three possible scenarios for Vietnam.

First, TPP could take effect, but the content of the agreement would change. If so, Vietnam’s export turnover to the US would be 50 percent lower than initially designed.

Second, TPP fails. If so, Vietnam’s exports to the US will still enjoy MFN like other WTO members. In this case, exports would depend on US economic performance

Third, there is no TPP, and the Trump administration imposes a monitoring scheme and anti-dumping duties on imports from Asia, including Vietnam. If so, Vietnam’s exports would decrease.

Nguyen Duc Thanh, head of VEPR, is of the view that the US withdrawal from TPP won’t affect Vietnam’s exports to the market. However, textile & garment exports would not increase as sharply as initially planned.

Recent Posts

Swisstulle advances dyeing efficiency with JigMaster

Swisstulle adopted JigMaster for its dyeing and finishing operations, especially for high-quality technical textiles used in fashion and automotive industries.

3 days ago

Birla Cellulose and Circ partner to scale textile recycling

Birla Cellulose, a leader under the Aditya Birla Group, has announced a long-term partnership with Circ, a U.S.-based textile recycling…

3 days ago

CARBIOS unveils enzymatically recycled polyester t-shirt

CARBIOS has collaborated with leading brands Patagonia, PUMA, Salomon etc. to create a groundbreaking polyester garment made entirely from textile…

3 days ago

Yangi launches sustainable fiber-based food tray

Yangi, renowned for its renewable packaging solutions, has launched a fiber-based food tray as a sustainable alternative to plastic trays…

3 days ago

Tarpaulife Project develops alternative to PVC-coated fabrics

The European Tarpaulife Project is working on polyolefin-coated fabrics, such as polyethylene, that can be manufactured to compete with PVC-coated…

3 days ago

Better Cotton to standardise measurements for cotton production

Better Cotton has joined the global non-profit alliance, Cascale, in a three-year project aimed at standardising LCA methods across the…

3 days ago