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    TPP Winner: Vietnam Garment Industry

    2016/2/25 9:56:00 61

    VietnamExportTPP AgreementClothingCotton YarnTextile And Garment Industry.

    The Pan Pacific Strategic Economic Partnership Agreement (TPP) formally signed the agreement early this month.

    Analysts say that once the agreement is ratified and ratified by national parliaments,

    Vietnam?

    The clothing industry is expected to become a big winner, and TPP is promoting Vietnam.

    Exit

    At the same time, the economic growth will also lead Vietnam to undertake China's industrial pfer.

    In February 4th, TPP made substantial breakthroughs.

    The 12 countries of the United States, Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam formally signed in Oakland, New Zealand.

    TPP protocol

    Together, the 12 countries account for 40% of the global economy, more than the European Union.

    According to the world trade organization, the United States imports tariffs on footwear from Vietnam up to 48%, and other items of clothing industry tariffs are nearly 20%.

    Once the TPP comes into effect, Vietnamese companies will enter the United States without tariffs, as well as other large markets that do not have free trade agreements with Vietnam, such as Japan and Australia.

    This will promote the demand of Vietnam's main processing products and create a large number of new employment opportunities in China.

    The industries that benefit most are

    clothing

    Footwear and textiles, which accounted for 26% of Vietnam's total exports in 2014.

    In addition, the clothing products of Vietnam and other TPP members should comply with the rules of origin, that is, raw materials such as

    Cotton yarn

    The need for local or TPP members will benefit Vietnam's upstream manufacturers of garments.

    Textile producers based on China will respond to rising domestic labor costs and will further expand to Vietnam and pfer industries.

    According to Eurasia Group, the world's largest political risk consulting firm, TPP could increase Vietnam's economic growth by 11% before 2025, while exports grew by 28% during the same period.

    Pedersen International Economic Research Institute said that after the signing of TPP, Vietnam's revenue and exports will grow by 13.6% and 31.7% respectively.

    China's exports will decline by 1.2% due to the trade diversion of TPP.

    China's Ministry of Commerce, citing Vietnam's Ministry of industry and trade, said that TPP will promote the growth of Vietnam's textile, footwear and agricultural and aquatic products exports, and that textile and shoe-making products will increase by at least 20%.

    Vietnamese media reported that Vietnam's exports of clothing and textiles to TPP members accounted for 70% of the total exports of similar commodities.

    After the entry into force of the TPP agreement, Vietnam's exports to the market are expected to increase by 1 times.

    By 2025, Vietnam's exports to the United States will reach $55 billion.

    Wu Huihuang, Minister of industry and trade of Vietnam, said in a press conference at the end of negotiations last October, that TPP promised to implement the provisions of TPP.

    Wu said that the textile and garment industry is a labor-intensive industry.

    After the entry into force of TPP, the export of Vietnam's textile and garment industry will increase rapidly, and the demand for labor will also increase.

    This will help Vietnam solve the employment problem.

    Vietnam is also participating in the negotiations on the regional comprehensive economic partnership agreement (RCEP).

    If RCEP is successfully signed, Vietnam will also implement the terms of the agreement.

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