Vietnam's Textile Industry Will Usher In A New Development Under The ASEAN Cooperation Framework.

According to experts, the proposed regional comprehensive economic partnership (RCEP) ASEAN Framework (10 ASEAN countries and six other countries, namely, Australia, China, India, Japan, New Zealand and South Korea) will be beneficial to Vietnam if the agreement comes into force. Spin and clothing Industry.

Recently, Kazunobu Hyakawa, a researcher at the Bangkok research center of the Japan Trade Promotion Agency, held at the JETRO seminar in Vietnam, Hu Zhiming, said that RCEP would normally regulate the rules of origin.

He said that when exporting to Japan, China or India, RCEP would no longer need to check different forms, because all these countries would impose the same tariffs on products, including textiles and clothing originating in any ASEAN country. This should help enterprises reduce compliance costs, and large and small Vietnamese enterprises must make full use of preferential tariff treatment.

JETRO Singapore deputy director Kohei Shiino explained that once the RCEP is implemented, the Vietnamese textile and garment industry will be the beneficiaries of great benefits. At present, in order to make use of the preferential tariff under the ASEAN Japan free trade agreement, Vietnamese clothing must be exported to Japan or ASEAN for its exports to Japan. In doing so, Vietnamese clothing did not bring much benefit to Japan's exports, because Vietnam had more than 1/3 of its raw materials imported from China. Now Vietnam's fiber exports to China enjoy zero tariff preferences.

If Vietnam exports to the United States, it can enjoy zero tariffs. Within the framework of TPP, Vietnam may enjoy the zero export tariff treatment of the largest export market for clothing and textiles exported from the United States. Senior executives of the company predict that the new Chinese investment will most likely be in the garment industry, while the textile and dyestuff industries will have fewer investment projects. Once TPP is implemented, Vietnamese enterprises will face more intense competition.

In recent years, Vietnam's textile and garment industry has developed rapidly. On the one hand, China's labor wages have risen, and domestic and foreign partners have begun to seek new cooperation partners, and orders have shifted to areas with more price advantages. On the other hand, the Vietnamese government has attracted foreign investment through a series of preferential policies. In 2005 ~2011, Vietnam's textile and clothing exports increased by 32%. In 2012, Vietnam exported 17 billion 150 million US dollars of textile and clothing, an annual growth of 8.5%.

But once RCEP is implemented, even Vietnam uses Chinese textiles. cloth Clothing can also enjoy preferential tariffs on exports to Japan and other contracting countries, Mr. Shiino said. Last month, the RCEP Working Group on trade, services and investment held its first meeting in Brunei. The next round of talks will be held in Australia on 23-27 September 2013.