Illustrative image (Source: VNA)Hanoi (VNA) – Vietnam’s garment and textile sector is still enjoying goodgrowth in exports to the US market even without the Trans-Pacific Partnership(TPP), according to Le Tien Truong, Director General of the Vietnam National Textileand Garment group (Vinatex).
While thesector is forecasted to benefit greatly from the TPP, it has so far thrived withoutTPP with Vietnam holding the second-biggest market share in the US and Japan.Those two countries are also the two main export markets of Vietnam’s garmentand textile.
Enterprisesin the sector have continuously made investment in machines and technology toimprove their productivity, reduce cost, thus increasing their competitivenessin the two markets.
Truongsaid TPP only provides one more favourable condition for exports.
TruongVan Cam, Vice Chairman of the Vietnam Textile and ApparelAssociation (VITAS) highlighted potential for Vietnam’s garment and textile exportin other markets, including the US. Apart from TPP, Vietnam has signed and willsign a dozen of free trade agreements (FTAs), Cam said, adding that therefore,the US’s withdrawal from the TPP will not affect the sector.
Hedismissed opinions that foreign investors are pouring into Vietnam’sgarment-textile sector in anticipation of the TPP, saying that the agreement isonly one of the reasons behind the investment. According to Cam, Vietnam alsoattracts investors with an open economy, a favourable business climate and taxincentives from the World Trade Organisation (WTO) and FTAs with EU, Japan, andthe Republic of Korea.
EchoingCam’s view on the role of the US in TPP, Nguyen Xuan Duong, Chairman of theBoard of Directors of the Hung Yen Garment Joint Stock Company, said Vietnam’sexports of garment and textile to the US will not change much without TPP.
At thesame time, the Vinatex General Director Le Tien Truong was of the opinion thatwhen the TPP may not be realised, there are possibilities that investors will suspendtheir investment decision. Therefore, the investment flow in the sector willslow down during 2017-2018 in comparison with the 2013-2014 period.
In2017, Vietnam’s textile-garment sector aims for a growth rate of 7-8 percent,and 30 billion USD in export earnings.-VNA
VNA
