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Great opportunity for Vietnam's textile joining to TPP

Acceding Trans-Pacific Strategic Economic Partnership Agreement (TPP) is a great opportunity for Vietnam's commercial sector, including the textile business will have conditions to promote export sand remove tariff barriers which are very heavy today.

Economic experts believe that the most prominent point of the TPP is the widespread liberalization of goods, import duties are removed completely and mostly removed immediately when the agreement into force.

Representatives of textile business believe that participation in TPP is necessary in the context of the textile sector are heavily dependent on imported materials and consumer markets in the countries. Currently, the export markets in the United States, tax up to 17.5 %  is too high. While in the European markets, Vietnam is being applied tax rates of 9.6% in the case of textile production in Vietnam to this market accounts for less than 17 % turnover. If the export turnover exceeds 17 %, the tax rates will be automatically adjusted to 17.5 % like in the United States markets.

If the 2001 export textile sector reached nearly $ 2 billion, the 2012 turnover reached $ 17.1 billion, making Vietnam become a 5th largest textile exporter in the world. However, the major challenge of Vietnam's textile sector now is the material source is depended on foreign, outdated technology equipment, relies heavily on the processing stages. Some materials like cotton must be imported 99 % from foreign markets; cloth must be imported 6 billion meters of the total demand of 6.8 billion meters; fiber materials must be imported 50 %.

On the other hand, through the TPP, Vietnam will have the opportunity to negotiate for the United States and member countries open their markets to goods from Vietnam, creating a strong push to boost exports,reduce trade deficit.

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