Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

Vietnam's garment industry gets a boost from investors

The upcoming Trans-Pacific Partnership is set to bring huge changes in Vietnam’s bustling garment industry and businesses and investors are preparing for this. A great deal of foreign textile and garment manufacturers are keen to cash in on the tax benefits of the upcoming Trans-Pacific Partnership (TPP) with Vietnam. The agreement promises radical tax cuts for Vietnam’s garment exports. This can be achieved only if they use fabric made locally or in other TPP countries, which excludes China. The agreement is being negotiated by 12 countries, including the US. However, for the emerging country’s thousands of small and medium-sized garment makers, the benefits are less certain.

The Ho Guom Garment factory in northern Vietnam produces 25 million garments every year, which bear the label ‘Made in Vietnam’. However, more than half the material used to make them comes from China. Sourcing locally is tough and expensive. At times it is extremely difficult to find zippers, or some special raw materials. Therefore, they have to contact Ho Chi Minh City, Danang, even China or Taiwan to get samples, so it takes a very long time.

Vietnam’s own textile mills today produce only a fifth of the country’s needs. Thus, there’s completion within the country’s clothing makers to find the right suppliers.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo