In 2016, garment exports from Vietnam are likely to increase by eight per cent. At present, Vietnam is among the top five largest apparel exporters in the world. The increase in Vietnam’s clothing exports is predicted on the basis of the country signing free trade agreements and a boost in domestic production. Vietnam’s garment exports to major markets have grown at a steady pace of 12.95 per cent in 2015 to the US; 5.96 per cent to the EU; 7.95 per cent to Japan; and 8.77 per cent to South Korea.

Vietnamese textile and apparel exports to the US are presently subjected to a 17 per cent levy, which would either be halved or nullified under the TPP. In fact, the implementation of Trans-Pacific Partnership agreement, can double Vietnam’s apparel and textile exports to the US. China presently accounts for 37 per cent share in the US textile and apparel market, while Vietnam only has an eight per cent share. The TPP deal can help Vietnam capture a 10 per cent points share from China, as Vietnamese textiles and apparels would then enjoy greater benefits than products from China, which does not form a part of the TPP agreement.