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Americans leave TPP, with textile care?

Textile industry is said to be the biggest beneficiary Economic Agreement Trans-Pacific partnership (TPP) was signed. Prior information US will withdraw from TPP, many argued that the textile is not affected and kept up the pace of old. There is only the textile export failed as expected when the TPP.


No impact


America is now the largest export market of Vietnam's garment, always accounted for 50% of total export turnover of the whole sector. 10-2016 only through July, total textile export turnover of Vietnam reached US $ 19.682 billion increased 4.1% compared to the same period last year, of which exports to the US reached US $ 9.476 billion. US exports to the remaining opportunities are seen in more positive way if TPP was signed, several tax items including textiles will of 0%. According to the experts as well as policy makers, textile industry would be benefited most by the current tax rate on the market that Vietnam TPP countries have not signed free trade agreements (FTAs) are at high levels, such as the US (17.5%), Canada (17%), Mexico (30%), Peru (17%). Accordingly, textile export turnover is expected to increase by 30-40% within the first year TPP effect, and after 3-4 years will double turnover. It is expected that turnover will reach $ 16 billion even in 2018 (an increase of $ 3 billion) and by 2020 will reach about $ 20 billion.



However, these numbers may be hard to come true when Mr. Trump announced that it would withdraw the United States from the TPP on the day of his inauguration President 20-1-2017. Many comments also expressed concern when the US withdrew from the TPP, textiles would be affected.


Share this regard, Mr. Truong Van Cam, General Secretary of Vietnam Textile and Apparel Association (Vitas) said that the TPP has reached an agreement or not, it does not affect Vietnam's garment, especially textile exports garments to the US by now this is the No. 1 export market of Vietnam. In fact, in recent years, textile and garment export turnover of Vietnam to the US has been increasing 12-13% / year, while the US textile and apparel imports increased by only 3%. Ie, Vietnam's export market share in the US market is improving very well, currently accounts for more than 11%. Moreover, Vietnam textiles account for only about 9% share of the US apparel import.


Same view above, Nguyen Duc Thanh, Director of the Institute for Economic Research and Policy (VEPR) said, textile, leather and footwear sectors are considered to benefit from the TPP. But if the United States withdrew from the TPP, the export of these industries remain the same. Also, if any TPP without the US, the company would be reaching out in TPP markets. "Anyway, with Vietnam is still benefiting from the 2 on 1 but no negative feelings. Vietnam remains on the tendency to exploit and expand into the US although no TPP, "Thanh said.



"Not quite adverse" is the view of the Vietnam Textile and Garment Group (Vinatex) when talking about this issue. Accordingly, Vietnam is considered as one of the country can achieve the most growth from the TPP. But those opportunities requires conditions relating to the institutions, the competitiveness of the economy for the company and Vietnam's economy can absorb the benefits of the TPP. Want to take advantage of this opportunity, companies must meet the requirements of the rules of origin "from yarn onward", while the problem of raw material Vietnam so far unresolved. Therefore, even if the TPP is passed, we can not benefit immediately, but it takes time to prepare the conditions like localized fiber, supporting industry for the textile industry in a number of years .


Experts also recognized, the biggest challenge for Vietnam's garment on rules of origin "from yarn onward" must originate from the TPP countries. Accordingly, almost no textile products from Vietnam are exported to the US duty-free, by Vietnam's garment sector mainly processed: Fabric imports from China, from Korea yarn, accessories mainly from a number of Southeast Asian countries ... Therefore, if the TPP without the US, there are still some points in favor of Vietnam. A representative of Vinatex said that, we will have a certain amount of time to prepare eligible for general agreement.


According to Thanh, views "TPP no benefit while Vietnam only true when we reform the right way and got into the TPP." That is, with TPP negotiation process, awareness and preparation of Vietnam policy very positive, as indicated in Resolution No. 06-NQ / TW. Although TPP can undo or dilate, we still have to comply with the spirit that it's time to integrate into the new TPP is not a disadvantage. So, this is still the time of the textile enterprises should actively prepare for the complete supply chain, increasing the competitiveness and added value of textile goods from Vietnam, thereby preparing positions available clinical integration at any time for a new generation of FTAs.