Domestic garment makers will have to meet the “Yarn Forward” Rule of Origin of the Trans-Pacific Partnership (TPP) Agreement if they want to enjoy tax preferences. The rule requires the TPP nation to use a TPP member-produced yarn in textiles in order to receive duty-free access. This rule will exert a big impact on Vietnam’s garment sector as 90% of garment accessories are imported, mostly from non-TPP countries, experts said at a workshop in Tien Giang province on June 7. To achieve future steady growth, they said the garment sector needs to develop the support industry to produce materials to replace imports. It needs to upgrade the design industry and narrow down outsourcing to increase the localization rate, and reduce imports, production costs, and dependence on overseas partners. Experts suggested that the government renew the national garment development strategy by introducing new policies for garments and re-planning industrial parks designed for the garment sector, especially textile and dyeing. Local businesses were advised to develop supply chain networks to export markets, particularly the US, improve the added value of garments, and exploit the domestic market. Garments are one of Vietnam’s leading hard currency earners. Last year, they generated nearly US$20 billion in revenue, including US$17 billion from exports. The US accounted for half of the total, followed by European countries, Japan and the Republic of Korea.