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    TPP Members Enjoy Preferential Tariffs On Exports To The United States

    2015/12/14 11:58:00 30

    FootwearBrandShoe Factory

    Boundary Nike, Adidas and main

    footwear

    brand

    The largest generation plant Baocheng company has pferred most of its factories in China to Vietnam, relying on the low labor cost and preferential tariff of Vietnam.

    According to Nikkei Asian Review, Baocheng has manufactured 42% of its total global footwear output in Vietnam at the end of September (2015), up from 39% in the previous year (2014) and 34% in the previous (2013) year.

    According to the above report, Taiwan Baocheng company exports 300 million pairs of shoes annually, accounting for 75% of the total revenue of the company.

    According to the report, Amos Ho, a spokesman for Baocheng, said that the company had gradually pferred plant manufacturing facilities to Vietnam since 2012, mainly due to high wages and employee benefits in mainland China.

    The report also points out that Baocheng is not the only foreign company to expand its factories in Vietnam, and the other one in Taiwan.

    A shoe factory

    Fengtai enterprises are also looking for more interests in Vietnam, mainly due to the membership of Vietnam's "Pan Pacific Economic Partnership Agreement" (TPP).

    Experts say TPP members enjoy preferential tariffs to export to the United States, and international brands such as Nike and Adidas will buy more Vietnamese products. This is why footwear manufacturers have moved their manufacturing factories in mainland China to Vietnam.

    More textile and garment enterprises have invested heavily in Vietnam and set up production plants to obtain the greatest opportunities TPP brings.

    According to data from the Vietnam customs administration, Vietnam's footwear exports amounted to US $9 billion 700 million in the first 10 months of this year, representing an increase of US $1 billion 410 million over the same period last year, of which exports to the US amounted to US $3 billion 340 million, up 24.8% from the same period last year, accounting for 34.4% of total footwear exports.

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