News Tags

Related Keywords: fifth of country needs, find right supplies, foreign textile and garment manufacturers, keen to cash in, of small and medium-sized garment makers, source from China, tax benefits, textile milss produce, TPP agreement, Vietnam clothing makers, Vietnam seeing wave of investment, Vietnam Textile and Apparel Association

The race is on for Vietnam’s clothing makers to find the right suppliers as its own textile mills only produce a fifth of the country’s needs today. With the Trans-Pacific Partnership (TPP) agreement being negotiated Vietnam is seeing a wave of investment from foreign textile and garment manufacturers keen to cash in on the tax benefits of the upcoming TPP.

The agreement being negotiated by 12 countries, including the US, promises major tax cuts for Vietnam’s garment exports, but only if they use fabric made locally or in other TPP countries, which excludes China.

Related Keywords: apparel tariff, enjoy zero import tax rate, EU Vietnam FTA, fabric and textile investors, Foreign textile and garment firms, FTA, Group construction, Hai Ha Industrial Park, invest into the park, plan to build production facilities, second production factory, South Korea Vietnam FTA, supply materials, Texhong Group, TPP agreement

Foreign textile and garment firms to enjoy a zero percent import tax rate under the commitments of free trade agreements (FTA) such as the Trans-Pacific Partnership Agreement, the EU-Vietnam FTA, and the South Korea-Vietnam FTA are moving is full swing with plans to build production facilities in ahead of FTAs in Vietnam.

Related Keywords: double size of production, Free trade agreement, largest economic sector, next textile and garment hotspot, textile export, TPP agreement, Vietnam Textile and Apparel Association, Vietnam textile and garment industry

Vietnam’s textile and garment industry is one of the largest economic sectors in the country, consisting 4,000 enterprises with a turnover of US$20 billion a year, accounting for 15% of. According to the Vietnam Textile and Apparel Association, textile and garment products are exported to 180 countries and territories in the world. In 2015, textile and garment industry is aiming at total exports of $28.5 billion.

The textile industry has been witnessing a steady growth over the recent years and pushing the country to become one of the top textile exporters in the world.

Related Keywords: access benefits of TPP, garment and textile material zone, material production, stricter environmental regulation, TPP agreement, Vietnam garment and textile industry, weaving-dyeing-garment production chain

The material source for Vietnam garment and textile industry is mainly imported. According to Vietnam Textile and Apparel Association (Vitas) around 60-70 percent of material is imported and 80 percent of businesses in this industry are doing outwork, resulting in low added value.

TPP will benefit those using materials made in their countries or in TPP member nations. Local businesses are short of capital to invest in this field, making them unlikely to enjoy tax incentives from Trans-Pacific Partnership (TPP) agreement which is expected to be signed this year.

Related Keywords: China and Vietnam, circular knitting and weaving equipment, explore new creora product, fabric development, growth of consumer demand, hosiery, Hyosung, Korea based elastane manufacturer, opened Textile development centre, seamless, TPP agreement

Hyosung, the Korea based leading elastane manufacturer having identified the two locations China and Vietnam as key sourcing and consumption areas has increased the capacity of its China and Vietnam plants at the beginning of this year.

The additional expansion in China comes in the light of growth of consumer demand for elastane as the country’s middle class continues to grow, while in Vietnam, anticipation of passing Trans-Pacific Partnership Agreement (TPP) agreement has lead the move.

Related Keywords: EU market, TPP agreement, Vietnam garment industy, zero tax rate

International firms seek to take advantage of benefits the country will potentially gain with the signing of Trans-Pacific Partnership (TPP) Agreement. Foreign investment in Vietnam's textile and garment sector is increasing rapidly.
 
The textile and garment industry in the TPP member countries is expected to benefit the most from the trade deal. Specifically, products made from domestically sourced materials or imported from other TPP member countries will enjoy zero tariff when being exported to signatory countries.
 

Related Keywords: EU market, TPP agreement, Vietnam garment industy, zero tax rate

Vietnam on entering into an agreement with two leading markets, the US and EU will see a boost in its textile and garment industry. With the signing of Trans-Pacific Partnership Agreement (TPP) and Vietnam-EU Free Trade Agreement, the Vietnamese garment and textile products will start enjoying the benefit of zero percent tax rate in the US and EU markets.

Currently, the average tax rates applied to the Vietnamese garment and textile products in the US and EU markets are 17.5 percent and 9.6 percent respectively.

Related Keywords: TPP agreement, Vietnam garment industy

Vietnamese products are made from material imported from China with the Trans Pacific Partnership (TPP) agreement which will be finalized this year to foresee ‘yarn forward’ principle. China not being a member of TPP, Vietnamese garment companies will not be able to take complete advantage of the low tariff due to the ‘yarn forward’ principle in TPP agreement.