return icon

VN textile & garment sector waiting for CPTPP benefits

The textile and garment industry has orders to export $18 billion worth of products, but the opportunities brought by CPTPP have not been that great so far.

The growth in exports to CPTPP markets contributed to export turnover of $18 billion worth of textiles and garments in the first six months of the year, but ‘golden opportunities’ still have not been seen.



CPTPP, which took effect on January 1, 2019, brought excitement to textile and garment companies.

Importers have shifted orders from Vietnam to Bangladesh, India and Myanmar, and garment companies are complaining about the lack of orders.

Deputy chair of the Vietnam Textile and Apparel Association (Vitas) Truong Van Cam confirmed that the numbers of orders are just equal to 70 percent of the same period last year.

Cam said it was a surprise that a sharp fall in the number of orders also occurs with large enterprises. Most enterprises said they only have enough jobs until the end of Q3.

The growth in exports to CPTPP markets contributed to export turnover of $18 billion worth of textiles and garments in the first six months of the year, but ‘golden opportunities’ still have not been seen.

 Meanwhile, Than Duc Viet, general director of May 10, said CPTPP has not brought added value to garment exporters.

“We are not getting additional benefits exporting products under CPTPP. Prior to that, we already had preferences from the Vietnam-Japan FTA, ” he said.

Japan is the largest market for Vietnam in CPTPP. However, according to Vu Duc Giang, president of Viet Tien Garment, the purchasing power of the market is on the decrease. The expected benefit in the non-US CPTPP is clearly smaller than in a CPTPP with the US.

Of the $5 billion worth of exports to CPTPP in the first six months of the year, $3.8 billion went to Japan. Canada was the second biggest consumer with $666 million and Australia $222 million.

Saigon 3 Garment began trying to penetrate the Australian and Canadian markets right when CPTPP was under negotiation. The company’s president Pham Xuan Hong said the early beginning helped the company obtain revenue of $1 billion from CPTPP in the first half of the year.

However, the products satisfying requirements on origin remain modest because most of the materials are imported from non-CPTPP countries. This means that other exports still have to bear the tax rate of 17 percent.

Vietnamese enterprises are eyeing Canada asthe biggest market in CPTPP with import turnover of $13.3 billion and predicted growth rate of 20 percent per annum.

With CPTPP and the tariff reduction from 17-18 percent to zero percent, Vietnam has opportunities to surpass Bangladesh and Cambodia and narrow the gap with China and the non-CPTPP countries.

Kim Chi

Labour-related difficulties lie ahead for Vietnamese textile firms

Labour-related difficulties lie ahead for Vietnamese textile firms

Vietnamese textile and apparel firms are facing tough times expanding their businesses, especially in terms of human resource development, experts said on Friday.  

Textile and garment industry sees great opportunities in EVFTA

Textile and garment industry sees great opportunities in EVFTA

A number of industries that make products for export, including textiles and garments, are expected to change for the better if they can take full advantage of the value chain from EVFTA.



Vietnamese economy to do well in 2022: experts


Two die in elevator accident at Hanoi building

Will Vietnamese "unicorn" Coin98 be listed on Coinbase?

If this turns out to be true, US investors will have easier access to Coin98. This would open a new development period for Vietnamese Blockchain startups.

VN jumps eight notches in WEF’s Travel & Tourism Development Index

Vietnam’s travel and tourism sector has jumped eight steps despite two years of slowdown caused by the pandemic, according to the World Economic Forum’s (WEF) latest study.

VN real estate bonds shackled by rules

Although experts believe that rating agencies are an indispensable element of a healthy and transparent market, and a significant fundraising channel, real estate developers may suffer hurdles due to stringent bond issuance rules.

Vietnam Int’l Fashion Tour helps promote national culture, tourism

The debut version of the Vietnam International Fashion Tour (VIFT) will get underway in 2022 and 2023 across five cities and provinces, with the aim of popularizing the country’s culture and tourism to the world, said organisers.

Foreigners’ joint ownership of seaports, airports in Khanh Hoa mustn’t be allowed

When discussing the draft resolution on special policies on a trial basis in Khanh Hoa province on May 24, many National Assembly deputies showed concern about the foreign ownership of seaports and airports.

Vietnam-Asia DX Summit 2022 opens in Hanoi

The Viet Nam-Asia Digital Transformation (DX) Summit 2022 opened in Ha Noi yesterday, where experts are examining ways to further utilise the...

Reaching growth target a challenge for this year: NA chair

National Assembly Chairman Vuong Dinh Hue yesterday day expressed his concern that this year’s growth target will be hard to reach.

Hai Phong tops Public Administration Reform Index for first time

Hai Phong and the Ministry of Justice topped the Public Administration Reform Index (PAR Index) of 2021, based on feedback collected from more than 79,000 people about administration reforms in 63 localities and 17 ministries in Vietnam.

Thai retail corporation to sell some 1,000 tonnes of lychees

Thailand's retail corporation Central Retail in Vietnam plans to put on shelves about 1,000 tonnes of lychee this year, with first batches of the fruit from Bac Giang province transported to its supermarkets after a ceremony on May 25.

Facebook ads in Vietnam to be charged 5 percent VAT from June 1

Facebook ads in Vietnam will be subject to a 5 percent value added tax (VAT) beginning from June 1. owner successfully calls for $3.5 million of capital

The investment in True Platform is one of the largest ever seed-round investment deals in a technology startup in Southeast Asia.

Hanoi to spend VND60 billion for civil servants to study for master’s, doctoral degrees

Under a project on improving the quality of its personnel, Hanoi plans to spend VND61 billion to send civil servants and public employees to training courses for master’s and doctoral degrees in Vietnam and overseas.

Japan helps Vietnam with earth observation satellite project

JICA has signed a loan agreement with the Vietnamese Government to provide a Japanese ODA loan worth over 18,870 million yen for the Disaster and Climate Change Countermeasure project using the earth observation satellite.