return icon Vietnamnet.vn

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.

 

{keywords}



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.

MORE NEWS

Four more vaccines to be added to Vietnam's national expanded immunization program

Four more vaccines will be added to the Expanded Immunization Program for the 2021-2030 period under the Resolution No. 104 of the Government on the roadmap to increase the number of vaccines in the program signed by Deputy PM Vu Duc Dam.

Seaweed: precious natural gift of Quang Ngai Province

Quang Ngai seaweed proving a sustainable crop to boost local incomes.

Startup festival to be held in Khanh Hoa this week

A startup festival (Techfest) for the south-central and Central Highlands regions will take place in Khanh Hoa province on August 19-20, heard a press conference in Nha Trang city on August 16.

Vietnam consults WB experts about National Master Planning

Vietnam targets becoming a developing country with modern industry and upper middle income by 2030, and a high-income developed nation by 2045, said Minister of Planning and Investment Nguyen Chi Dung.

Fuel reserves enough for 6-1/2 days of consumption

The Ministry of Industry and Trade in a recent report said that the national fuel reserves are enough for six days and a half of consumption and equivalent to nine days of imports.

Hanoi urban area faces break-ins

Residents living at the Gamuda Gardens villas in Hanoi are complaining about security problems following a rise in the number of robberies.

Businesses need orders as purchasing power in export markets falls

The increase in input costs plus the decline in demand in many large markets are posing challenges to businesses in the last months of the year.

What is the future of Phu Quoc?

Phu Quoc is known as a resort tourism paradise but in the future, the city island will be not only a destination for tourists but also an economic and financial center in the region and the world.

Time for major realtors to buy land

Cash flow to the real estate market has been tightened. Now is the time for major realtors to buy land.

Son Tung MTP's younger sibling sparked controversy following his debut

Nguyen Viet Hoang, younger brother of Vietnamese pop sensation Son Tung MTP, made his debut as a singer under the moniker 'MONO', sparking widespread criticism for his lackluster vocals and questionable fashion sense.

First district to prohibit single-use plastic next month

Co To island district in the northern province of Quang Ninh will officially ban visitors from bringing plastic bottles and bags to the island from September 1 in a bid to spur sustainable tourism.

VIETNAM NEWS HEADLINES AUGUST 16

First district to prohibit single-use plastic next month

India becomes Vietnam’s biggest meat seller in H1

Vietnam imported over 79,700 tons of meat and meat products worth US$250.9 million from India in the first half of 2022, making the latter the former’s largest meat supplier, according to the Import-Export Department.

VIETNAM BUSINESS NEWS AUGUST 16

Remittances to HCMC declines by 13% in H1

Defense Ministry approves of long-planned cargo airline

The Ministry of National Defense has thrown its support behind a plan to issue an air transport license to IPP Air Cargo JSC, whose chairman is billionaire Johnathan Hanh Nguyen, according to a dispatch recently sent to the Government Office.
back_to_top