Even Without TPP, Vietnam'S Textile Industry Is Still Smiling.

Although Vietnam's textile industry still faces many difficulties, Vietnam Textile Association believes that Vietnam's textile industry is still competitive in terms of labor and production level.

Vietnam Textile Association said that Vietnam's textile and garment export market is facing many challenges, but there are also some "scoring points" to create opportunities for Vietnam's textile and garment exports.

And stressed that whether TPP can eventually pass, Vietnamese textile and garment manufacturers need to carefully formulate future business direction.

I. uncertainty in the US market.

The United States is Vietnam's largest export market for textile and clothing, accounting for 40% of total exports.

Vietnam Textile Association said that due to the uncertainty of TPP, enterprises need to redesign their development strategies to deal with the uncertainty of the US market: (1) TPP still exists, but the adjustment of implementation time and content may increase access conditions.

This will result in a 50% reduction in profit from TPP; (two) if there is no TPP, Vietnam's textile and clothing exports to the US can only comply with the existing WTO regulations, and exports will depend on the development of the US economy; (three) if there is no TPP, the new US government may impose anti-dumping duties on textiles imported from Vietnam, including Asian countries, which will reduce Vietnamese textile exports to the US.

Based on the above three points, the Vietnam Textile Association reminds manufacturers to plan their direction carefully.

Two, advantages in other export markets.

Of course, Vietnam Textile Association emphasizes that Vietnam has many other opportunities besides TPP.

(1) Vietnam - EU

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As the second largest export market of Vietnam's textile industry, the EU has great potential. Especially after the signing of the Vietnam EU free trade agreement, it will further promote Vietnam's textile exports to the market.

According to statistics from the French Industrial representative office in Vietnam, Vietnam was one of the three largest textile exporters in Asia from 2007 to 2015 (the other two countries were Kampuchea and Bangladesh), and the annual export volume increased by 25%, equivalent to 3 billion US dollars / year.

(two) Vietnam Asia Eurasian Economic Union FTA.

In addition to the EU market, Vietnamese textile manufacturers also have many opportunities in emerging markets, especially in the Russian market.

Vietnam is the first country to sign FTA with the Eurasian Economic Union, which provides an absolute competitive advantage for Vietnamese textiles entering the Russian market and other markets of Eurasian Economic Union.

It is worth mentioning that the Russian market demands the most relaxed rules of origin, and only requires processing in Vietnam.

In addition, the FTA of Vietnam and the Eurasian Economic Union also abolished the unreasonable provisions of the previous textile tariff collection by weight.

(three) the emerging Burma market.

Burma has also been rated as a potential market for Vietnam's textile exports.

In October 2016, the United States announced the lifting of sanctions against Burma, preferential tax reduction policies for less developed countries, and the establishment of ASEAN economic community, creating favorable conditions for Vietnam's textile expansion to Burma's exports.

In addition to exporting textile products and raw materials, they can also invest in factories in Burma, or establish joint factories with Burma enterprises, or even invest in them.

To make use of cheap labor in Burma.

In addition, the policy of political stability and trade facilitation is improving day by day, especially for the use of TPP, Vietnam EU FTA and other FTA investment flows to make positive contributions to improving the scale and level of production of textiles, yarns and raw materials in Vietnam's textile industry.

The Vietnam Textile Association said that cooperation with the EU market will help Vietnamese textile enterprises to enhance their design capabilities, production management skills and labor productivity, improve production patterns, pform from pure processing to autonomous raw material processing (FOB), independent design production (ODM), autonomous production and distribution (OBM), thereby enhancing the initiative and product added value of production enterprises.

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