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    Vietnam'S Entry Into The Pan Pacific Economic Strategy Partnership Agreement Will Benefit The Garment Industry

    2012/2/2 11:58:00 35

    Vietnam and the United States and 7 other countries are now carrying out the Pan Pacific economy.

    strategy

    When the agreement of TPP is signed and executed, Vietnam (and other contracting parties) will have more advantages to Vietnam than other countries.

    textile

    And footwear will enjoy concessions that the US has gradually cut tariffs to completely abolish.


    According to the recent consultation conducted by the Pacific economic strategy partnership agreement (TPP), the US trade representative suggested that the "Yarnforward" rules of origin for Vietnamese textiles should be adopted, namely, spinning and subsequent processing and production processes to identify the origin of the products.


    In other words, if Vietnam goes to the US textile, it wants to enjoy the TPP agreement.

    tariff

    The spinning and subsequent processing and manufacturing processes used in the textile industry, including weaving, cutting and sewing, should be manufactured in the states of TPP, and only fibers are allowed to be supplied by non TPP contracting parties.


    According to Fang Rong, Dang Phuong Dung, Secretary of the Vietnam clothing and Textile Association (Vitas), once the rules of origin recognition of textiles are included in the implementation of the TPP agreement, it will be unfavorable for Vietnamese garment textile enterprises, including garment and textile enterprises invested by Vietnamese businessmen in the United States. The main reason is that the production process of these investments is mainly tailoring and sewing.


    According to Tran Quang Nghi, general manager of Vietnam Vietnam garment and textile group (Vinatex), as of today, Vietnam accounts for more than 50% of the total amount of textiles exported to the world by the United States. If the TPP agreement is successful, there will be 95% kinds of Vietnamese textiles exported to the United States, enjoying 0% preferential tariffs.


    Vietnam exported 7 billion 100 million US dollars of textiles to the United States in (2011), up 13% over the previous year.


     
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