80% of textile materials imported from outside CPTPP, will be a great difficulty for Vietnam textile and garment.

 

 

According to Truong Van Cam - General Secretary of the Vietnam Textile and Apparel Association (Vitas), textile and garment industry is considered the most benefited by CPTPP, when the growth rate will be from 8% -10% year. The visible advantage is that Vietnamese textile products will need many big potential markets such as Australia, Canada, Chile ... in which many markets in Vietnam have no FTA.

Vietnamese enterprises through CPTPP will make full use of the raw material supply, learn production technology and management skills from each other, and increase the attractiveness of foreign investment in the industry. For example, the economy of the textile and garment supporting industries such as Taiwan, Hong Kong and South Korea has not yet joined the CPTPP and are strongly moving to invest in Vietnam to enjoy advantages of tax incentives. Decreased to 0%, when CPTPP effect.

In particular, the countries in the CPTPP will have high requirements for members to comply immediately and always with the commitments in the agreement. This will impact institutional change, create incentives and incentives (reduce import taxes on raw materials, eliminate tariff barriers, etc.), and accelerate business growth. On the other hand, the current textile and footwear group in the Americas is highly protected, so after the tariff reduction through the CPTPP, the competitiveness of Vietnamese goods in these markets will increase. substantial.

On the textile and apparel consumer market, many countries (Canada, Mexico, Australia, New Zealand, Singapore) are now importing large quantities of textiles and garments from China. For Vietnamese goods in these markets, reduce competitive pressure on Chinese goods because of preferential tariffs.

Specifically, Canada is committed to eliminating 42 tariff lines for Vietnam's textile and apparel products, bringing Canada into a new and larger market for Vietnamese textiles. Canada is quite similar to the United States, so it is easy for businesses to access the Canadian market.

However, according to Mr. Vu Duc Giang - Chairman Vitas, besides the advantages that can be utilized from CPTPP, Vietnam's textile and garment industry still has many problems. Specifically, the amount of materials used in the industry has to be imported in large quantities, technology management, fashion design, brand development is weak. While the requirements of the CPTPP are very high, the production and export enterprises must meet the requirements, standards and commitments related to the origin of goods, environmental protection and intellectual property.

The biggest difficulty is the principle of origin "from fiber on." As textile products want to enjoy a 0% tax rate when exporting to CPTPP markets, it is necessary to prove the origin of the raw material from the fiber is either domestically or imported from the CPTPP. In Vietnam, the textile industry is currently importing up to 80% of raw materials from non-CPTPP countries such as China, Korea and Taiwan. The quantity of raw materials imported from CPTPP countries is less than 10%.

In addition, Vietnamese textile and garment enterprises are still producing, processing and ordering goods in foreign designs and materials, and low labor productivity. Therefore, the competitiveness of enterprises in the international market is still weak compared to foreign enterprises.

At the same time, the intra-CPTPP countries have strong export textile countries such as Mexico, Peru, Malaysia ... these countries are ahead of us, and at the same time control the input materials, this is weak point. of Vietnamese textile. We are both a partner and a competitor to these countries.

On the threshold of CPTPP implementation, the textile and garment industry in Vietnam also began to change, as a series of investors from Korea, Taiwan has come to Vietnam to take advantage of the CPTPP. According to Vitas, Vietnam now has more than 2,000 foreign enterprises from 16 countries and territories have invested (about 16 trillion dollars) in the textile and garment industry. South Korea is the largest investor, followed by Taiwan, Hong Kong and Japan.

Large foreign direct investment projects such as the Singapore $ 80 million Ramatex Textile Factory in Nam Dinh and the $ 80 million Ha Nam YKK Factory specializing in zippers and other materials for the garment industry. The Vietnamese textile and garment industry is a potential "golden" land.

 vinatex.com