Vietnam's inclusion in Trans-Pacific Partnership (TPP) and the benefits there of, is likely to hurt other Asian textiles and clothing exporters including Bangladesh. With TPP, Vietnam will have easy access to US market. This trade and investment diversion in the textiles and clothing industry towards TPP members, particularly Vietnam, will also affect India, Pakistan, Sri Lanka and Cambodia negatively.

Deborah Elms, Executive Director, Asia Trade Centre feels the biggest winner will be Vietnam as foreign investors would flood the country. The TPP agreement covers 12 countries and 40 per cent of the global economy. The European Union, however, won’t be affected greatly by this. Non-TPP members though would bear the brunt.

Earlier, TPP talks have been stalled repeatedly due to various sticky issues, which also included generic drugs, agricultural subsidies and dairy exports. In Hawaii, trade representatives started talks recently and will work towards successful conclusion by the end of this week.

Vietnam would have the largest percentage income gains and export increases out of all countries at 13.6 per cent and 31.7 per cent, respectively, as per Peterson Institute of International Economics (PIIE).