Vietnam’s textile and garment industry welcomes many new opportunities from the CPTPP
A recent report shows that Vietnam can increase textile and garment exports by more than 10% in 2018 if it makes good use of CPTPP member markets.
The CPTPP will remove tariff barriers and promote trade in the common market of 11 member economies with a gross domestic product (GDP) of nearly $13.5 trillion.
According to a recent report by the World Bank (WB), the CPTPP will help Vietnam’s GDP increase by 1.1 percentage points by 2030 to 3.5%. Under this FTA, exports and imports are expected to increase by 4.2% and 5.3%, respectively.
Vietnam will also benefit from trade liberalization and market opening. Besides, the CPTPP is forecasted to push Vietnam to reform more strongly in many fields.
According to FPT Securities Company (FPTS), garment and textile exports to 10 CPTPP member economies account for about 15% of Vietnam’s total export revenue. If fully implemented, the CPTPP free trade area will be the second largest export market of Vietnam’s textile and garment, after the US with a market share of 47%.
In the period 2013 – 2017, the growth rate of Vietnam’s textile and garment exports to CPTPP member countries reached an average of 8% per year. Among CPTPP member countries, Canada, Japan, Mexico, Australia, New Zealand and Singapore are currently heavily dependent on imported textiles, mainly from China.
Vietnam has not signed bilateral free trade agreements with Canada, Mexico and Peru, so Vietnam’s competitiveness in these markets is currently very poor. According to FPTS, the CPTPP will create an “incredible advantage” for Vietnam in accessing member markets, with textile and garment export revenue expected to reach $4.8 billion in 2018, equivalent to an increase 10.5%.
Vietnam’s textile and garment industry is aiming for an export turnover of 35 billion USD this year, up nearly 13% compared to 31 billion USD in 2017.
Also according to the World Bank’s report, Vietnam needs to continue to improve its competitiveness and create favorable trade conditions if it wants to take full advantage of the benefits from the CPTPP, including continuing to improve connectivity with Vietnam. global value chains and cut trading costs.
According to Vietnambiz.
