CPTPP expected to benefit Vietnam's textile, garment sector
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to benefit the textile and garment, footwear, and food and beverage industries in Vietnam as the commitments on opening markets made in the old TPP have not changed, experts feel. The benefits would, however, be lower than it would have been with the TPP.
US President Donald Trump withdrew from the TPP after he was elected last year.
Japan is the second largest export market for Vietnamese textile and garment industry, with an annual growth rate of 23 per cent. Its garment imports from Vietnam is much smaller than those from China — 6 per cent versus 65 per cent. But the latter is on the decrease, while the former is rising because of preferential tariffs, according to a report in a Vietnamese newspaper.
CPTPP, however, is less attractive than the TPP and offers fewer opportunities to increase output and exports. But it is expected to lead to a greater level of export diversification.
The World Bank estimates that CPTPP would help Vietnam’s gross domestic product increase by 1.1 per cent more by 2030, while export turnover to CPTPP countries may increase to $80 billion, or 25 per cent of Vietnam’s total export turnover.
Of this, the important business fields of Vietnam, including food and beverage, footwear and textile and garment would see export turnover increase by $10.1 billion, $6.9 billion and $0.5 billion, respectively. (DS)
Fibre2Fashion News Desk – India