Analysis Of Advantages And Disadvantages Of Vietnam'S Textile Industry Joining TPP

It is understood that the p Pacific Strategic Economic Partnership Agreement (

By increasing

The rules of origin are used to protect textile producers in the United States.

Once joining the TPP, Vietnam must target the domestic market with raw materials to increase the added value of its products.

In terms of technology, Vietnamese textile producers can not import raw materials from China forever if they want to benefit from the provisions of TPP.

As of the first half of 2015,

The amount of textile exports to the Pacific Rim partnership (TPP) countries has accounted for nearly 70% of the total export volume of the industry.

Once Vietnam joins TPP, its market share will double.

Of course, concerns about rules of origin have also been associated with increasing textile industry and at the same time, as many as 60-90% of textiles in Vietnam must be imported from TPP countries.

According to the Vietnam Textile Association, from the TPP market figures, Vietnam's textile exports to the United States ranked first, accounting for 42% of the total textile exports in Vietnam, amounting to about $5 billion 180 million (up 11.01% compared with the same period in 2014), accounting for nearly 50% of the TPP market share, and second of Japan, and the total value of textiles exported to Japan is about 1 billion 300 million US dollars.

There are 10 markets in the 11 markets of TPP, and Vietnam's textile exports have achieved positive growth since the beginning of 2015.

Pressure on rules of origin

However, TPP has strict requirements for product provenance, which is not properly concerned by Vietnamese textile exporters.

The p Pacific Strategic Economic Partnership Agreement (TPP) protects American textile producers by increasing the stipulation of the origin of textiles.

Ms. Deng Fangrong, vice chairman of the Vietnam Textile Association, said

Vietnam is the largest export market, accounting for about 50%.

This market is what almost all exporters want to enter.

The TPP agreement not only provides Vietnam with an opportunity to enter the US market preferentially, but also increases the added value of Vietnamese products in the supply chain.

The representative of the World Trade Organization (WTO) said that the United States is the largest importer of textiles in the world. Although the domestic production industry is relatively small, it has great appeal. It has already proposed that the textile industry of TPP must use the rules of origin to start from spinning.

Accordingly, some textiles must enjoy preferential treatment according to the TPP tariff. All raw materials must start from silk thread and must be produced in TPP countries.

The representative of the world bank expressed concern that Vietnam was the third largest exporters to the US market, but now it is overly dependent on imported raw materials.

Vietnam has 60 to 90% of its textile products from other markets, mainly from China and Taiwan, China.

Once joining the TPP, Vietnam must target the domestic market with raw materials so as to increase the added value of the products.

In terms of technology, Vietnamese textile producers can not import raw materials from China forever if they want to benefit from the provisions of TPP.

In response to the challenge of the textile industry, the world bank representative said that Vietnam's textile industry structure lacked the supply chain and led to over reliance on imported raw materials.

At present, the added value of the textile industry is low, but if we want to move to a higher position in the value chain, we must invest heavily in technology and manpower.

Labor efficiency is low and costs rise. For example, if we produce a product Polo coat together, a Vietnamese worker will make 12 pieces a day, while Chinese employees can do 25.

Mr. Ruan Chunyang, chairman of Xingan clothing general company, also admitted that at present, the productivity of Vietnamese workers is low, only 30% of Malaysia and 40% of Thailand.

Structural modification is needed for improvement.

Ms. Deng Fangrong, vice chairman of the Vietnam Textile Association, said that TPP had a high demand for the country's origin, which was a challenge for the textile enterprises, because the starting point of the textile industry was weakening in the raw material links, that is to say, many sources of textile raw materials, such as cloth and dyestuffs, rely heavily on imports.

Because of this, Ms. Deng Fangrong, vice chairman of the Vietnam Textile Association, said that the whole industry, associations and government need to make greater efforts to attract foreign enterprises to invest in these weakest areas.

In addition, we should strengthen the union between the industry and domestic producers and raw materials manufacturers, and make full use of their products as textile materials.

Ms. Deng Fangrong said, "only in this way can we meet the requirements of the origin and enjoy the benefits brought about by the agreements."

The world bank representative said Vietnam needs to take measures to further open rather than defend in the TPP negotiations.

At the same time, we should push forward the reform of the industrial structure and improve the supply chain, such as strengthening investment in textile and printing and dyeing trade unions, and improving the textile industry. This is a matter of life and death, not only for the implementation of TPP, but also for the steady development and improvement of competitiveness.

This requires more investment and more consideration of environmental factors.

Therefore, in attracting FDI projects, we must formulate corresponding incentive policies and strictly screen FDI projects in accordance with technical standards.

Vietnam does not lower environmental standards, but the government needs to give financial subsidies to the printing and dyeing industry.

In particular, through the development of the textile industry group, we should strengthen the association among enterprises in the value chain.

Dr. Wu Zhicheng, vice president of the Vietnam Central Economic Management Research Institute (CIEM), said optimistically that it is very difficult for enterprises to abide by the principle of origin, abide by the labor and environmental technology and standards as well as the current legal procedures, but it is also a driving force for enterprises.

TPP involves legal commitments and amendments, and involves policies in Vietnam.

Enterprises must not only clarify the principle of admittance commitment, but also make clear the changes in domestic policy.

Dr. Wu Zhicheng said that once joining the TPP, the textile industry will have a larger market and a faster tax cut, which means more opportunities for development.

At present, if the average tariff of textile industry is not TPP, it will be 16-17%. If there is TPP, it will be reduced to 0%. Therefore, it is obvious that the competitiveness and benefits of textile industry will be greater.