CPTPP to create impetus for textile, footwear industries: Experts

One of the key contents of the CPTPP is the removal of 95-98 percent of tariff lines as soon as the agreement enters into force. The remaining tariff lines will be cut over the next seven years, moves predicted to aid the growth and export turnover of the two industries. Shrimp processed for exports. (Photo for illustration) Vietnam’s garment and textiles export turnover hit USD 25.2 billion in the first 10 months of 2018, up 17.1 percent year-on-year. Meanwhile, footwear exports were valued at USD 13 billion, 9.7 percent higher than in the same period last year. The export turnover of garment and textiles recorded growth in key markets such as the US, the EU, the Republic of Korea, China and member nations of the CPTPP. According to the Vietnam Textile and Apparel Association (VITAS), the CPTPP will help Vietnam accelerate its growth and make the export market more balanced. The zero-percent tariffs will help the country’s textile and garment industries expand market share in countries with high tax rates like Canada, New Zealand and Australia. Vietnam’s export turnover of the industry is forecast to reach USD 35 billion in 2018. The figure is expected to climb to USD 50 billion in 2025. Experts, however, also pointed out difficulties facing the sector. The CPTPP sets strict requirements on product origin, which is a big challenge for Vietnamese enterprises and the textile and garment and footwear sectors in particular, as they are heavily dependent on material sources imported from China, India and other ASEAN countries…. [Read full story]