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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: 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.