Garment exports to US expected to top $11bn in 2015: media
Garment exports to US expected to top $11bn in 2015: media
Shipments of Vietnamese garment and textile products to the U.S., the leading export market of Vietnam, are expected to top US$11 billion in value this year, a 12.24 percent year-on-year rise, said an official from the Vietnam Textile and Apparel Association (VITAS).
The U.S. is Vietnam’s top market, covering about 50 percent of the Southeast Asian country’s total exports, the Hai Quan (Customs) news website quoted Dang Phuong Dung, deputy chair of VITAS, as saying last week.
This is the market that most countries in the world are always eager to export goods to, Dung added.
Vietnam’s exports of garment and textile products to the U.S. have continued to leap forward over the last 20 years, from zero to $9.8 billion in 2014, she said.
If the Trans-Pacific Partnership (TPP) trade agreement is signed, this figure will likely double, the deputy chairperson added.
The TPP is a proposed regional free trade agreement aimed at eliminating tariffs and lowering non-tariff barriers that is being negotiated by 12 countries throughout the Asia-Pacific region, which collectively contribute almost half of global output and over 40 percent of world trade.
The 12 countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
The TPP signing will bring benefits to Vietnamese enterprises, the first of which will be reduced import duties on garment and textile products shipped to the U.S.
"If meeting the requirements of TPP, especially the yarn forward rule of origin, Vietnamese goods will have an edge in the U.S. as the import taxes will be halved, from 15-16 percent to 7-8 percent,” Dung told Hai Quan.
The “yarn forward rule of origin” requires that all items in a garment from the yarn stage onward be made in one of the countries that is party to the TPP pact.
This is one of the main challenges facing Vietnamese textile and garment businesses, according to the American Chamber of Commerce in Vietnam.
“In simple terms, the ‘yarn forward’ rule means that the benefits of the agreement accrue to regional producers rather than outside players such as China,” the business association said on its website.
The TPP’s strict origin requirements pose a challenge for garment and textile businesses, as the industry is heavily dependent on imports, especially from China, for materials, Dung said.
Therefore, according to representatives of VITAS, the government and the industry should coordinate in attracting foreign companies to invest in Vietnam to supply materials, strengthening links between domestic producers, exporters and material manufacturers.
Julia K. Hughes, president of the U.S. Fashion Industry Association, told Hai Quan that many U.S. companies will wish to source from many countries participating in the TTP when the agreement takes effect, and Vietnam is the highest rated in its ability to attract new American businesses.
Therefore, the Southeast Asian country should seize this opportunity, Hughes advised.
Tran Viet, chief of the legal department of state-run Vietnam National Garment and Textile Group (Vinatex), told Hai Quan that textile exports continued to grow at double-digit rates in the first half of 2015 to $12.8 billion, an increase of 10.26 percent over the same period last year.
In particular, shipments to the U.S. market occupied 42 percent of total textile exports, earning $5.18 billion, which represented an increase of 11.01 percent over the same period of 2014, Viet said.
Meanwhile, Vietnam's garment shipments to the EU were estimated at $1.45 billion, up 8.2 percent compared with the same period of 2014.
Le Tien Truong, Vinatex general director, said even if exports in the rest of the year rise more slowly than projected, Vietnam’s garment and textile shipments can still achieve the target of $27-27.5 billion this year.
