Econ
Garment, footwear have competitive advantages in US without TPP
Vietnam’s garment and footwear products still have competitive advantages in the US market though the latter has pulled out of the Trans-Pacific Partnership (TPP) agreement.
Nate Herman, senior vice president of supply chain at the American Apparel and Footwear Association, told a recent seminar on product safety and compliance issues in Ho Chi Minh City that textile and garment products take the lead in Vietnam’s exports stateside in terms of revenue, though the country is at a disadvantage, as the US has pulled out of the TPP agreement. However, the sector still has competitive advantages.
He forecast the export growth rate of commodities from Vietnam to the US will outstrip the rates of its competitors, even if Vietnam does not benefit from any trade incentive programs and free trade agreements.
Jon Fee, senior counsel at Alston & Bird LLP, said Vietnam had seen respective rises of 8.74 percent and 11.83 percent in shipping apparel and footwear to the US in the 12 months to August 31.
Behind China, Vietnam is the US’s second largest provider of these products, he noted, adding that American retailers and consumers are aware of Vietnam’s plus points in terms of quality, price and delivery commitment.
According to the Ministry of Industry and Trade (MoIT), Vietnam’s textile and garment exports are expected to increase 8 to 9 percent year-on-year to $30.5 billion this year.
In the first eight months of this year, the country earned $16.86 billion from the products’ exports, up 8.2 per cent year-on-year. Exports to the US stood at $8.16 billion, up 7.3 percent, to the EU $2.47 billion, up 4.1 percent, to Japan $1.97 billion, up 5 percent, and to South Korea $1.56 billion, up 12.6 percent.
According to MoIT, Vietnam’s textile sector is experiencing a number of favorable factors. In particular, the EU has approved rules on the accumulation of origin for raw materials for Vietnam.
Exports, however, are still forecast to be affected by global factors, such as US President Donald Trump’s trade protection policies.
Vietnam’s competitors are also likely to continue support their textile and garment industries through tax policies and currency devaluations.
Vietnam’s textile sector has also been affected by high costs and a lack of human resources, which impact on competitive capacity.
Based on its analysis, MoIT said the garment sector will not see many changes over the closing months of the year.
Meanwhile, the export prospect of the footwear sector has been forecast positive this year. The industry’s export revenue in the first eight months rose 12.2 percent year-on-year to $9.64 billion.
Vietnam Leather and Footwear Association estimated that the industry will earn $17.8-18 billion from exports in 2017, up 10 per cent against the previous year.
He forecast the export growth rate of commodities from Vietnam to the US will outstrip the rates of its competitors, even if Vietnam does not benefit from any trade incentive programs and free trade agreements.
Behind China, Vietnam is the US’s second largest provider
of garment and footwear products. |
Behind China, Vietnam is the US’s second largest provider of these products, he noted, adding that American retailers and consumers are aware of Vietnam’s plus points in terms of quality, price and delivery commitment.
According to the Ministry of Industry and Trade (MoIT), Vietnam’s textile and garment exports are expected to increase 8 to 9 percent year-on-year to $30.5 billion this year.
In the first eight months of this year, the country earned $16.86 billion from the products’ exports, up 8.2 per cent year-on-year. Exports to the US stood at $8.16 billion, up 7.3 percent, to the EU $2.47 billion, up 4.1 percent, to Japan $1.97 billion, up 5 percent, and to South Korea $1.56 billion, up 12.6 percent.
According to MoIT, Vietnam’s textile sector is experiencing a number of favorable factors. In particular, the EU has approved rules on the accumulation of origin for raw materials for Vietnam.
Exports, however, are still forecast to be affected by global factors, such as US President Donald Trump’s trade protection policies.
Vietnam’s competitors are also likely to continue support their textile and garment industries through tax policies and currency devaluations.
Vietnam’s textile sector has also been affected by high costs and a lack of human resources, which impact on competitive capacity.
Based on its analysis, MoIT said the garment sector will not see many changes over the closing months of the year.
Meanwhile, the export prospect of the footwear sector has been forecast positive this year. The industry’s export revenue in the first eight months rose 12.2 percent year-on-year to $9.64 billion.
Vietnam Leather and Footwear Association estimated that the industry will earn $17.8-18 billion from exports in 2017, up 10 per cent against the previous year.
