Vietnam is all set to sign the Trans-Pacific Partnership agreement. And it’s the garment and textile industry that will benefit the most with this agreement. With TPP membership, Vietnam’s annual textile and garments export to the US could increase by 13 per cent to 20 per cent by 2017. TPP membership would give it unfettered access for apparels, footwear, seafood and pharmaceuticals. The agreement would help stimulate investment in making raw materials, helping to increase the rate of localised products. By 2015, the localisation rate for export products is expected to be between 60 per cent and 70 per cent, helping open up many opportunities for the sector. It would allow Vietnam to become one of the largest textile and garments centers in the world.
TPP membership would stimulate the economy and inflation would drop as the number of foreign-invested projects increased. Vietnam has around 4,000 garment factories employing about 2.5 million workers. The Trans-Pacific Partnership Agreement is a free trade agreement currently being negotiated by nine countries. These include the United States, Australia, Malaysia, New Zealand, Peru, Singapore, and Vietnam.
To qualify for TPP membership, however, Vietnam will have to abandon the Chinese model of maintaining a state-dominated economy behind a screen of capitalism.