Vietnam'S Textile Raw Materials Are Too Dependent On Imports.

Vietnam's Ministry of industry and trade believes that the textile industry is the core interest of Vietnam's entry into the p Pacific Partnership Agreement (TPP). However, because Vietnam's textile raw materials are too dependent on imports, it is facing great challenges in the origin and supply chain of TPP's "yarn principle".

Reported that TPP's "

"Vietnam textile industry must be further developed, especially investment and development of yarn and cloth industry, so as to create opportunities for Vietnamese enterprises to participate in the supply chain of TPP members in depth.

But up to now, the domestic textile industry still needs 60% raw materials to be imported from China, and domestic products are mainly knitwear and low-end textiles.

Especially for twill weave fabric, towels and other high-end fabrics, 70 - 80% depends on imports.

At present, Vietnamese textiles still face higher tariffs on major export markets, including the United States (17.5%), Canada (17%), Mexico (30%) and Peru (17%).

Once the TPP comes into effect, import tariffs will fall sharply.

Among them, for the US market, 73.1% taxes will drop to 0% immediately, 19.7% will reduce 35 to 50%, and decrease to 0% in eleventh to 13 years.

For the Canadian market, Vietnam's export textiles will enjoy zero tariff treatment immediately or 3 years later.

For Mexico and Peru, Vietnam's textile tariffs will drop to 0% in sixteenth years.

But it is not easy to profit from it.

Invest in one

The capital is up to tens of millions of dollars, which makes Vietnam's domestic textile industry.

In addition, it also faces fierce competition from mainland China and Taiwan enterprises in China.

Reported that the Vietnamese Ministry of industry and trade believes that because Vietnamese enterprises are mainly engaged in processing or designated commodity production, can not control the use of raw materials.

At the same time, most of the enterprises in China are backward in production technology, old in style, and unable to satisfy the customers' requirements and lack of market competitiveness.

Therefore, some experts believe that to solve the problem of the rules of origin of TPP, the enterprises of the domestic textile industry should be strengthened to cooperate with each other. The export enterprises actively seek the cooperation between the raw and excipient production enterprises and minimize the import, which can meet the requirements of the origin and guarantee the competitive power of the price.

However, it is reported that at present, the capacity of Vietnamese domestic enterprises to form a complete industrial chain of yarn dyeing and finishing is still insufficient, and most domestic enterprises concentrate on the lowest value added garment links.