This is a statement issued by FPT Securities Company (FPTS) on textile and apparel industry in the recently published update of the Comprehensive Transition and Transnational Partnership (CPTPP).

According to FPTS, export of textiles and garments to CPTPP countries continuously accounts for about 15% of total export turnover. Thus, after the CPTPP, CPTPP is the second largest market for textiles, after the US (47%). In addition to the large export volume, the total import of textiles and apparel from the CPTPP is relatively large (about US $ 1.5 billion per year)

In the period 2013 - 2017, the average growth rate of textile and garment exports to CPTPP countries is 8% per year. Among them, Canada, Japan, Mexico, Australia, New Zealand and Singapore are heavily dependent on imported textiles, mainly from China. Vietnam has not signed bilateral trade agreements with Canada, Mexico and Peru, so the competitive advantage of Vietnam in these markets is weak. CPTPP will create remarkable advantage for Vietnam to expand and exploit the market with export turnover expected to reach USD 4.8 billion in 2018 (growth of 10.5%).

However, in order to enjoy preferential tariffs in CPTPP countries, Vietnamese textiles and garments should meet the requirements of origin "from fiber onwards". On request from "yarn forward", the production phase of yarn - textile, dyeing - sewing need to be implemented in CPTPP member countries to enjoy preferential tariffs. Up to now, Phong Phu Corporation (PPH) and Thanh Cong Textile Garment - Investment - Trading JSC (TCM) are the typical units in the industry with closed production capacity. , meets this requirement.

Source baohaiquan.vn