Vietnam’s garment industry upbeat

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textile worker vietnamVietnam’s textile industry, one of the country’s key export sectors, is on a growth path due to increased interest of foreign firms to shift their manufacturing bases away from China and Bangladesh, the Thoi Bao Kinh Te Saigon newspaper reported.

Another push comes from Vietnam’s membership in the Trans-Pacific Partnership (TPP), a trade pact between Canada, Mexico, Australia, New Zealand, Chile, Peru, Malaysia, Brunei and Singapore which will see custom duties for Vietnam exports to these countries being phased out by 2015. The garment sector will then enjoy zero percent tariffs in the US market, compared to the current average of 17.2 per cent.

As a result of this, 128 US businesses began to look for first-time garment partners in Vietnam late last year, as they are moving away from China and Bangladesh, according to the Vietnam office of the New York-based business information provider, TigerTrade Services.

Vietnamese garment companies are also looking forward to more contracts with the EU ahead of the Vietnam-EU Free Trade Agreement which will also take effect in 2015.

Garment exports, worth $3.1 billion in the first quarter of 2013, were up 18.3 per cent year on year.

However, relocation of factories from Bangladesh, which experienced a series a of factory collapses in the past which has raised concerns over labour conditions, will strongly depend on what foreign companies are ready to spend on wages ion Vietnam. Bangladesh is still the region’s cheapest countries in terms of monthly wages, two to three times lower than in Vietnam.

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Reading Time: 2 minutes

Vietnam’s textile industry, one of the country’s key export sectors, is on a growth path due to increased interest of foreign firms to shift their manufacturing bases away from China and Bangladesh, the Thoi Bao Kinh Te Saigon newspaper reported.

Reading Time: 2 minutes

textile worker vietnamVietnam’s textile industry, one of the country’s key export sectors, is on a growth path due to increased interest of foreign firms to shift their manufacturing bases away from China and Bangladesh, the Thoi Bao Kinh Te Saigon newspaper reported.

Another push comes from Vietnam’s membership in the Trans-Pacific Partnership (TPP), a trade pact between Canada, Mexico, Australia, New Zealand, Chile, Peru, Malaysia, Brunei and Singapore which will see custom duties for Vietnam exports to these countries being phased out by 2015. The garment sector will then enjoy zero percent tariffs in the US market, compared to the current average of 17.2 per cent.

As a result of this, 128 US businesses began to look for first-time garment partners in Vietnam late last year, as they are moving away from China and Bangladesh, according to the Vietnam office of the New York-based business information provider, TigerTrade Services.

Vietnamese garment companies are also looking forward to more contracts with the EU ahead of the Vietnam-EU Free Trade Agreement which will also take effect in 2015.

Garment exports, worth $3.1 billion in the first quarter of 2013, were up 18.3 per cent year on year.

However, relocation of factories from Bangladesh, which experienced a series a of factory collapses in the past which has raised concerns over labour conditions, will strongly depend on what foreign companies are ready to spend on wages ion Vietnam. Bangladesh is still the region’s cheapest countries in terms of monthly wages, two to three times lower than in Vietnam.

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