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    TPP Helps Vietnam To Expand Export Market

    2015/12/7 17:14:00 40

    LeatherFootwearTextiles

    According to statistics, this (2015) 10 months ago Vietnam

    Leatherwear

    and

    footwear

    Total exports amounted to US $10 billion 500 million, an increase of nearly 20% compared with 2014, of which exports to the US amounted to US $3 billion 400 million, an increase of 27%. The United States and the European Union have become Vietnam's largest leather and footwear export market.

    and

    textile

    Leather and footwear are seen as a huge opportunity to expand the export market after the effective implementation of TPP.

    According to Ms. Marybeth Turner, the economic Commissioner of the US embassy in Vietnam, TPP will help Vietnam to expand its export market, including leather and footwear, as the tariff goes to zero. Vietnam's footwear exports to the United States will grow rapidly.

    At present, the US import tax rate for such products is 17%~18% on average, and TPP will be reduced to zero after effective implementation. Vietnam footwear products will have more competitive advantages.

    It is expected that the annual growth rate of leather and footwear in Vietnam is about 15%~22%.

    The opportunity to increase market share and export volume has increased substantially. However, the supply of raw materials in this industry is also a difficult problem.

    Although the amount of footwear exports exceeded $10 billion 500 million in the first 10 months of this year, the import amount of raw materials has reached US $4 billion 300 million, and the self-control rate of the industry is only 55%.

    So far, only foreign-funded enterprises have the ability to supply raw materials in the field.

    According to He Weixing, chairman of Dongxing Industrial Company (Ha Duy Hung), in terms of potential, Vietnamese leather and footwear manufacturers are no less than foreign manufacturers, but because of the original ingredient supply resources can not take the initiative to rely on the supply of raw materials in mainland China, it is difficult for Vietnamese manufacturers to enjoy zero tariffs.

    At present, there are 800 manufacturers engaged in leather and footwear production, of which only 1/4 (about 200) are foreign-funded enterprises, and the export volume of such enterprises also accounts for 2/3 of the total exports of leather, footwear and handbags.

    Taiwan Baocheng and South Korea Taekwang and other foreign-funded enterprises have invested in the supply chain and set up a national integrated production distribution system with their autonomous supply advantages in the raw materials allocation. The foreign-funded enterprises enjoy the most preferential tariff treatment after opening the TPP market.

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