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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: chinese investment, TPP, Vietnam garment industy

Vietnam garment and textile sector has been drawing in investment projects from China, Taiwan, and Hong Kong of which China’s investment in Vietnam have been increasing piercingly Vietnam in anticipation of the signing of the Trans-Pacific Partnership (TPP) in additional will have access to lucrative market that would come with it.

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.