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  Vietnam’s textile and garment industry is confident of achieving its 2016 export target of $30 billion as most of the companies have enough orders already or are confident of achieving them to meet their revenue goals, according to Vietnamese media reports.

  Importers have already placed ample of orders and the textile and garment industry in Vietnam may have to look for more staff in order to complete them on time, according to Vietnam Textile and Apparel Association (VITAS).

  The textile and garment industry exported products worth $2 billion in January 2016, which is a rise of 5.8 per cent as compared to the corresponding period last year. Production increased by 12 per cent in the textile industry and by 11.2 per cent in the apparel industry in January.

  The implementation of the Trans-Pacific Partnership (TPP) will bring more export opportunities for the country. (MCJ)

  Fibre2Fashion News Desk – India

  26/02/2016

  Quote from: “http://www.fibre2fashion.com/news/textile-news/vietnam-confident-of-meeting-30bn-export-target-177865-newsdetails.htm“

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  Vietnam’s textile and garment industry is confident of achieving its 2016 export target of $30 billion as most of the companies have enough orders already or are confident of achieving them to meet their revenue goals, according to Vietnamese media reports.

  Importers have already placed ample of orders and the textile and garment industry in Vietnam may have to look for more staff in order to complete them on time, according to Vietnam Textile and Apparel Association (VITAS).

  The textile and garment industry exported products worth $2 billion in January 2016, which is a rise of 5.8 per cent as compared to the corresponding period last year. Production increased by 12 per cent in the textile industry and by 11.2 per cent in the apparel industry in January.

  The implementation of the Trans-Pacific Partnership (TPP) will bring more export opportunities for the country. (MCJ)

  Fibre2Fashion News Desk – India

  26/02/2016

  Quote from: “http://www.fibre2fashion.com/news/textile-news/vietnam-confident-of-meeting-30bn-export-target-177865-newsdetails.htm“

• Vietnam is set to gain a lot from the Trans-Pacific Partnership (TPP). And Bangladesh, China, Indonesia and Pakistan are worried. Bangladesh and China are the world’s number two and the top garment exporter respectively. Indonesia and Pakistan have large textile and apparel sectors.

  Vietnam is already the world’s fourth biggest garment exporter. The TPP deal could see Vietnam’s exports — from clothing and footwear to coffee and seafood — increase by 30 per cent and boost the country’s economic growth by 10 per cent by 2030.

  Access to TPP for Vietnam is certainly a concern for apparel exporting countries, especially for Bangladesh. Bangladesh will continue to face average duties of 16 per cent on garment exports to the US while Vietnam’s duties will be eliminated. However, TPP still needs to be ratified in the US and several other countries, delaying implementation at least until next year. The EU-Vietnam FTA will take seven years before duties on Vietnam’s garment exports to Europe are completely eliminated.

  Even so, key regional apparel producers such as Cambodia and Myanmar are alarmed that if the trade pacts proceed as planned, Vietnam could undercut their vital garment industries. Myanmar garment makers look to Europe as both a market and a source of investment, with garments a key part of the country’s plans to become a manufacturing economy.

  FashionatingWorld

  18/02/2016

  Quote from: “http://www.fashionatingworld.com/new1-2/item/4916-vietnam%E2%80%99s-progress-with-tpp-alarms-rivals.html“

• The question is not whether Vietnam will benefit from the TPP – encompassing 40% of the global economy – but how to maximise its benefits.

  Once approved by all member countries – the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam – the TPP will create a Pacific economic bloc with fewer barriers hindering the flow of goods and services. “The recently concluded TPP will not only improve market access, but will also serve as a critical anchor for the next phase of structural reform in Vietnam”, said Sandeep Mahajan, lead economist of the World Bank in Vietnam. “The Vietnamese economy is estimated to grow by an additional 8%-10% at least until 2030”.

  Tariff reductions and liberalised service sectors will mean cheaper imports of goods, services and factors of production. That means labour-intensive manufacturing sectors facing high import tariffs will benefit the most, including textiles, apparel and footwear, along with food processing and electronic industries.

  Among the current TPP signatories, Vietnam has unique comparative advantages, particularly in labour-intensive manufacturing. By enhancing access in key export markets, the TPP is expected to create opportunities for Vietnamese manufactured exports to replace Chinese exports in some places – notably the major markets of the United States and Japan. This trend began before the conclusion of the TPP negotiations, and the new agreement is expected to further enhance the manufacturing sector.

  TPP Impacts on Key Economic Impacts

   

  The TPP also is expected to considerably increase foreign direct investments to build up export capacity, including in upstream suppliers to sectors subject to strict rules of origin such as the textile and garment industry.

  At the same time, the implementation of the TPP will present several challenges for Vietnam. The country’s primary export sectors, including agriculture, could be at risk amid structural transformations that reallocate resources to manufacturing. Reforms to modernise and commercialise the agriculture sector will have to be accelerated to cope with this risk.

  According to Nguyen Thi Thu Trang, Director of WTO unit of VCCI, “for all sectors, especially those that are poised to be negatively impacted by the TPP, such as animal husbandry and agriculture, efforts should be made to identify key bottlenecks to the sectors’ development, so that remedies can be proposed for implementation. Their competitiveness should be gradually improved to take full advantage of new market conditions. The government is the key negotiator, and fully and comprehensively understands all of the commitments under the TPP. As such, it is the most suitable agency to provide guidance on the commitments to enterprises”.

  Real Exports Change, by sector, 2020-35

  The agreement also requires countries to adopt stricter rules. In Vietnam, this means changes affecting a broad spectrum of issues related to governance and the business environment, including regulatory quality, intellectual property rights, investor protection, competition, state-owned enterprise management, labour and environmental standards, food safety, public procurement, and liberalisation of services, including financial and telecommunications services.

  Finally, the TPP’s strict rules of origin could be a hurdle for Vietnam, where exports are highly dependent on imported materials and intermediate goods. Vietnam currently imports between 60 and 90 percent of textiles from other countries. The majority of these imports come from China and Taiwan, non-TPP countries, which means non-compliance with TPP rules of origin requirements.

  The required restructuring to maximize TPP benefits poses a short-term challenge for Vietnam, but will also likely boost foreign direct investment in upstream businesses and build production capacity. As evidenced, a number of Japanese, Chinese and South Korean firms are already investing heavily in fibre production in Vietnam.

  Additionally, information and guidance on taking advantage of the TPP should be provided to businesses as soon as possible, making them well prepared for economic integration. “Information should be provided to all sectors and areas of business, with close coordination of the VCCI, business associations and government agencies. In the business community, the VCCI is actively working on this plan and we expect further guidance from the Government and cooperation from ministries and agencies”, said Vu Tien Loc, Chairman of Vietnam’s Chamber of Commerce and Industry.

  “The TPP is considered a model for regional cooperation in the 21st century. The agreement includes 30 chapters, touching on not only traditional areas such as commodities, services, and investment, but also on new areas such as e-commerce, supply chains, and state owned enterprises, among others. The agreement is expected to boost the economic development of all TPP members, generate jobs, reduce poverty, improve living standards, and promote innovation, labour productivity and competitiveness, transparency and good governance, as well as enhance labour and environmental standards. Source: Ministry of Industry and Trade”

  For Vietnam to position itself to fully benefit from the TPP when implemented, complementary reforms are necessary to improve competitiveness and strengthen the capacity of the production sector to meet TPP standards.

  As noted by Sherry Boger, Chairwoman of Amcham, “The TPP is still a promise, not yet a reality. It is a framework for action, and should be a focus in 2016”.

  Implementing such changes will be demanding for Vietnam on its gradual path of reform, impacting the sectors of large state-owned enterprises and other institutional legacies of the past 40 years.

  “Vietnam has taken important steps recently to improve and enhance the market institutions that underpin a successful and sustainable economy”, stated David W. Carter, AusCham Director at the Annual Vietnam Business Forum 2015. “Nevertheless, as Vietnam integrates deeper into the global economy, particularly following the conclusion of the Trans-Pacific Partnership and other free trade agreements, it is imperative that Vietnam take bold steps to continue improving market institutions and economic freedom”.

  The determination to implement reforms and TPP commitments will bring Vietnam to a new level of economic development, creating a firmer foundation for the country to progress toward the goal of becoming a modern, industrialised upper middle-income country.  

  Vietnamnet

  19/02/2016

  Quote from: “http://wtocenter.vn/tpp/impacts-tpp-vietnamopportunities-and-challenges“

• Under the Trans Pacific Partnership, Vietnamese companies won’t have to pay tax when exporting products to the US. Vietnamese textile and garment products now have an import tariff of 17 per cent on an average when entering the US market. However, there is a feeling that it is not Vietnamese enterprises, but US importers which will get benefits, because US importers have to pay the tax.

  The question being raised is whether US importers would pay more for the products of Vietnamese exporters and if so whether they would share benefits to be brought by TPP with Vietnamese enterprises. The opinion is that US importers will take full advantage of TPP to optimise their profits. However, in an indirect way, there will be benefits to Vietnamese enterprises, because US importers would get higher profits thanks to TPP, and therefore, would place bigger orders with Vietnamese enterprises.

  Once demand increases, and Vietnamese supply is limited, US importers will have to offer higher prices to scramble for contracts with Vietnamese enterprises. Meanwhile, it has been estimated that 70 per cent of Vietnam’s textile and garment export turnover is from foreign invested enterprises. Vietnam exported $23 billion worth of textile and garment products in 2015, while only $7 billion went to Vietnamese enterprises’ pockets.

  FashionnatingWorld

  16/02/2016

  Quote from: “http://www.fashionatingworld.com/new1-2/item/4895-tpp-may-give-vietnam-tax-benefits.html“

• AsemconnectVietnam – US capital continues flowing into Vietnam in anticipation of the opportunities to be brought by TPP (Trans Pacific Partnership) and other free trade agreements (FTAs).

  Just after six months after opening, a bonded warehouse in Long Binh Industrial Zone in Dong Nai province is at full capacity. It supplies dyes and chemicals, and is run by Huntsman Textile Effects.

  Huntsman Textile Effects’s president Paul G. Hulme said the company set up a bonded warehouse there so as to be able to provide dyes and chemicals more rapidly.

  The company may consider expanding investment in the future, depending on demand in the country.

  He is optimistic about business performance in Vietnam, as the demand for products is expected to increase when TPP takes effect and more capital will be poured into textile projects.

  Vietstock quoted a report by Savills released in late September 2015 as saying that foreign direct investment (FDI) in Vietnam in the first half of 2015 accounted for 76 percent of the total FDI capital committed.

  According to the Vietnam Textile and Apparel Association (Vitas), FDI capital in the textile & garment sector had reached $2 billion by the end of 2015, a record high.

  Meanwhile, Amcham predicted that Vietnam’s total export turnover to the US may reach $51.4 billion by 2020, including $15.2 billion worth of textile and garment exports.

  It believes that the textile and garment exports to the market would be as high as $20 billion by 2025.

  US investors, who understand the great opportunities Vietnam’s textile & garment industry can grab when TPP takes effect, have flocked to Vietnam to set up factories.

  Avery Dennison RBIS, belonging to Avery Dennison Group, inaugurated a $30 million factory in Long Hai Industrial Zone in Hau Giang province in January.

  It is expected that Avery Dennison RBIS will make labels for strong brands like Uniqlo, North Face, Nike and Adidas. The new factory in Long An province will allow the company to increase its production capacity and better satisfy customer demand.

  A representative of the company said TPP would lure more textile and garment manufacturers to Vietnam, and the more they come, the better the company’s business would be.

  In July 2015, Avery Dennison RBIS opened a product distribution centre in Binh Tan district in HCM City.

  Nguyen Son, chair of the Vietnam Cotton and Spinning Association (Vcosa), believes that the demand for accessories, dyes and chemicals would increase in the future, when more textile and garment factories are set up in Vietnam.

  Vietnam now imports billions of dollar worth of products to serve the industry.

AsemConnect

13/02/2016

Quote from: “http://asemconnectvietnam.gov.vn/default.aspx?ZID1=4&ID8=47169&ID1=2“

Chairman of Vietnam Textile and Garment Association, Vu Duc Giang

(VOVworld) – Local textile and garment industry will invest more in yarn and dying techniques to benefit from various free trade deals, including the Trans Pacific Partnership agreement. Chairman of Vietnam Textile and Garment Association, Vu Duc Giang said the industry expects to earn 30 billion dollars from exports this year though it should invest more in human resource training to improve designs and control the material supplies: “We need state support in the development schools and curriculum to train designers. They should be innovative and be aware of western culture so that our products could enter European and US markets.”

VOV World

Vietnam Breaking New

13/12/2016

Quote from: “http://www.vietnambreakingnews.com/2016/02/vietnamese-textile-and-garment-industry-strives-for-integration/“

The way ahead for an effective trade environment

Brussels, Belgium – 5 February 2016 – The Federation of the European Sporting Goods Industry (FESI) is welcoming the release of the text of the Free Trade Agreement (FTA) between the EU and Vietnam, today.

“FESI is pleased that negotiating parties have taken the proposals of the sporting goods industry into account by integrating measures such as immediate duty removal for most footwear from our sector and an accelerated duty removal schemes for leather sports shoes“ stated FESI Secretary – General, Alberto Bichi. “ We have supported the negotiations throughout the process and are endorsing a rapid implementation process” , he continued.

A fully operative EU-Vietnam FTA will open considerable opportunities in terms of improving services to EU-consumers and in facilitating market access for the European sporting goods industry. Vietnam’s steady economic growth over the last years and its beneficial demographics (over 92 million inhabitants, of which 43% younger than 25 years) make it an attractive developing export market for the EU and the sporting goods sector. Moreover, Vietnam is one of the top sourcing countries for sporting goods world-wide, manufacturing products such as athletic footwear, sports-apparel and sport accessories.

FESI