Vietnamese Garment Exporters Are Eager For The Pan Pacific Partnership Agreement.

Vietnam's clothing companies placed high hopes on the TPP agreement, because they predicted that once the agreement was signed, their chances of exporting to the US market would grow.

The Pan Pacific Partnership will promote the export of commodities to Vietnam by several categories of Vietnamese and other members of the Pan Pacific Partnership Agreement.

Such a tariff repeal will help the clothing sector to enhance competitiveness in the US market and other countries.

If the Pan Pacific Partnership Agreement is implemented, about 95% of Vietnam's exports will enjoy it.

It is reported that during the recent round of consultations in the Pan Pacific Partnership Agreement, some new problems emerged, as each trade representative sought to apply the principle of yarn traceability.

According to this principle, only the yarn and post yarn production processes of the members of the Pan Pacific Partnership Agreement, such as fabrics, tailoring and sewing stage clothing items, and those produced by the members of the non Pan Pacific Partnership Agreement, will receive preferential tariff benefits.

Experts say that if this principle is applied, it will not only be unfavourable to Vietnamese clothing exporters, but will also deprive American investors who invest in Vietnam from the Pan Pacific Partnership Agreement, because they only bear the process of tailoring and sewing in Vietnam.

They believe that changing or relaxing the principle of yarn tracing will greatly open up the US market for Vietnamese exporters.