Japanese Enterprises Focus On TPP Benefits Policy, Welfare Is Very Good.

KURARAY, Itochu commerce and other Japanese companies have been strengthening textile production and sales in Vietnam.

KURARAY will add a sewing production line to Vietnam's joint factory in July (2016); Itou Tada will expand the production capacity of the local fabric factory.

Mainly if the TPP agreement is effective, the relevant output will be reduced.

Cost, many enterprises have been optimistic about Vietnam, with considerable technical level, especially textile industry, and set up an export base for us.

KURARAY's fiber business subsidiary will add a sportswear sewing production line to the joint factory in Da Nang, central Vietnam. The two sides will jointly invest about 300 million yen to expand local capacity.

The company will export fabrics from Japan to Vietnam for sewing and sell to the United States.

Vietnam's local origin ratio is expected to increase from 55% now to 60% after July.

The company is also assessing the investment in weaving and dyeing equipment in the suburbs of Hu Zhiming, Vietnam, at one billion yen.

Itou Tada also focused on TPP in 2014, and invested 500 thousand tons of Loom factory in Vietnam every month in Vietnam.

The company's foundry production.

It is mainly exported to the United States and its capacity has increased by 2 times. If TPP comes into force, it is bound to further increase its output to the United States.

TORAY has also expanded its production in Vietnam.

Its subsidiary, Hu Zhiming, set up a local legal person to export to Vietnam and nurture Vietnam as a sewn stronghold.

Shikibo Ltd. has narrowed down the sewing factories in mainland China's subsidiaries and expanded the capacity of Vietnam cooperation.

Vietnam has higher wage costs than Bangladesh or Burma, but Vietnam has better sewing technology.

If the production mode of Japan's raw material yarn exported to Vietnam for sewing and processing, it will help to revive the Japanese fiber industry.

Other

There is also a trend to expand Vietnam's capacity.

The RHYTHM WATCH CO. and LTD, a large clock manufacturing company, are gradually moving to mainland China to produce watches and clock related capacity to Vietnam, which is now being exported to the US for about 7% tariffs.

In addition to Vietnam's salary level of half of the Chinese mainland, Vietnam's government has been promoting the relaxation of foreign investment restrictions.

In addition to participating in TPP and ASEAN, Vietnam has signed a FTA with South Korea and the European Union.

In Vietnam, the sewing industry is dominated by investments from mainland China, Taiwan and South Korea. Apart from the sewing industry, footwear, leather products, agricultural and aquatic products will also benefit from TPP and have considerable potential for development.

On the other hand, Viet Nam used to prohibit foreigners from owning property rights in the past. It relaxed in 2015, recognized the ownership of the longest 100 years, and abolished the restriction of foreign capital on the highest proportion of investment in listed companies (49%).