Vietnamese Garment Manufacturers Express Their Dissatisfaction With China'S Cloth Brand.

In order to support local exporters, the US government will stipulate that all countries joining the new Pacific trade area must reduce imports from China, but the bill has suffered resistance from enterprises and government officials. They point out that this will lead to the destruction of the global supply chain.

Estimate

The Senate will approve a bill on Wednesday to expand the power of trade negotiations of Barack Obama.

Until then, the support of the bill has been a struggle between the opposition and the opposing parties, and their supporters are faced with the pressure to prove that the p Pacific Partnership Agreement (TPP) will create jobs for the United States.

For this reason, US trade negotiators have put forward a request to Vietnam, a big exporter of clothing, that the country needs to reduce its dependence on China's textiles and obtain the most preferential market treatment provided by the United States, which is not the content of the p Pacific Partnership Agreement itself.

The goal is to create new markets for the textile industry in Vietnam.

At present, the total number of employees in the US textile industry is about 250 thousand, and the total value of exports last year reached US $20 billion.

"The United States and Mexico are both large.

Product producing country. "

Eliza Levy, spokesman of the National Council of Textile Organizations, said (Eliza Levy).

"Vietnam only needs to convert the import of yarn and cloth from China to the United States and Mexico."

American fashion

Against this, it says it ignores the complexity of the global supply chain.

Vietnam, the exporter of clothing and footwear exports to the United States, died of the second largest exporter, after China, with sales of $13 billion 100 million last year.

But Vietnam produces only 1/5 of its fabric, so the country needs to buy about $4 billion 700 million worth of cloth from China, roughly equivalent to half of its total annual imports.

What the clothing brand wants to see is that no matter where the origin of the cloth is, all the goods produced in the new trade area can be exempted from customs duties when entering the US market.

For Vietnam's clothing and footwear products exported to the United States, the trade negotiations on the p Pacific Partnership Agreement may reduce the US tariffs it needs to pay from 7% to 32% to zero.

Julia Hughes, President of U.S. Fashion Industry Association, said that textile exporters in the United States could not meet the demand of Vietnam, which would force Vietnamese garment producers to rely on China.

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According to the current regulations, "Vietnam can not get many tax free access to the United States," Hughes said.

The US apparel industry believes that the p Pacific Partnership Agreement will help the industry.

The American apparel industry employs 3 million employees, including designers and retail workers.

But inside the US Congress, whether the free trade will jeopardize the employment situation of manufacturing industry is a controversial issue.

US negotiators defended their position.

Trevor Kincaid, deputy assistant trade representative of the United States, said the p Pacific Partnership Agreement will "bring new opportunities for US businesses, including opportunities related to Vietnam's textiles and clothing industry," Kincaid said.

He said the US government is "concentrating on the best possible agreement for the labor and export sectors of the United States".

Vietnam has its own ideas, and the country is rapidly developing the local textile industry, which will help to circumvent the relevant restrictions.

"Vietnam is seeking to reduce the dependence of the garment industry on China's imports so as to better benefit from the p Pacific Partnership Agreement."

Phan Chi Dung, senior official of Vietnam's Ministry of industry and trade, said.

But he also said there was little chance that American manufacturers would fill the gap.

Recently, companies from Hongkong, Korea and Taiwan of China have invested hundreds of millions of dollars in Vietnam's textile mills, hoping to get the duty free access right in the US market later.

Hongkong Tal Apparel Ltd (TAL Apparel Ltd.) said that 1/6 of its shirts were sold to the United States, and it said it was investing $240 million in Vietnam to build a textile factory, which is scheduled to be completed in 2017 to provide raw materials for two Vietnamese garment factories.

Li Guoquan, chief executive of Tal Apparel Ltd, believes that Vietnam's textile industry will take five years to achieve self-sufficiency.

He pointed out that the cost of textile providers in the United States is too high and far from the Asian market, so it is not competitive.

Chinese companies are moving to Vietnam as domestic wages rise and expectations for the Pacific Free Trade Zone.

Youngor Group, a Chinese clothing manufacturer, operates a factory in Nam Dinh, Nam Dinh, Vietnam. The company is planning to purchase textiles from Vietnam instead of from its factories in China, hoping to export duty-free products to the United States in this way. (Limited by Share Ltd Nam)

"Our main competitors have moved to Vietnam, and many companies are moving."

Yu Jian, deputy general manager of YOUNGOR Vietnam, said.

The manager of Yanian Garment Co., a Chinese clothing company in Hanoi, is looking at producing zippers, buttons and other accessories to help Chinese investors meet the requirements of "local content".

According to a recent report released by the US Congress, if Vietnam's textile industry can achieve rapid expansion, its exports to Mexico can even rival the textile industry of the United States.

Mexico is also participating in the trade negotiations on the p Pacific Partnership Agreement.

Due to pressure from US brands, the trade agreement will allow Vietnam to continue to purchase textiles and yarns from any country that is listed as a "short supply list".

But Hughes of the American Apparel Association pointed out that the list is too restrictive and can not be modified in the future, which will impede the business of the US brand.