If the Vietnam dong (VND) is still holding as it was
If the Vietnam dong (VND) is still holding as it was, there is no big attraction for Vietnam’s textile and garment sector. In the case if the Fed increased, China and Japan to devalue the local currency, the gravity from their exports have more advantages over us.
Mr. Vu Duc Giang – chairman of the Textile and apparel Association
In the seminar “The stock market in the late 2015 – Investment Opportunities in textile and garment stocks, Mr. Vu Duc Giang – chairman of the Textile and apparel Association (Vitas ) said, the TPP trade agreement will bring benefits for domestic textile and garment enterprises but also a challenge for these businesses.
Vietnam textile and garment industry in 2015 is expected to export 27.5 to $ 28 billion. Vietnam ranks the fifth in the world in the export of textiles and garment to the world market and the manufacturing sector domestic consumes $ 3.5 billion this year. The trade excess of the textile and garment industry this year is expected in the range of 13.5 to 14 billion dollars in exports of this sector as mentioned above.
Giang said, by WTO Vietnam textile and garment has a special status to overate without TPP. When TPP is accepted, it will help to impact this sector faster, and as TPP members, Vietnam will benefit more.
Joining TPP, Vietnam Textiles and garment will have the opportunity and challenge interleaving. We do not expect to get all the benefits from the TPP and other FTAs, which will be distributed to the investors of raw materials and manufacturing of garments, retail outlets and consumers of the Member States of TPP. Thus, the benefits will be split into quarters, but it will affect the price of products we export to the TPP member countries. There will be better prices, cheaper, so that the benefits will be divided equally over. Textile and garment growth will be about 25 % annually as TPP effects.
When TPP trade agreement is accepted, investment flows in textiles and garment will also have a further overate. On that basis, Vitas confirms that from 2018 to 2040, Vietnam will be a textile and gamrnet factory of the world and ranking the second only behind China.