Tax benefits of the upcoming Trans-Pacific Partnership (TPP) is one of the main reason that Vietnam’s garment industry is attracting investment. The agreement being negotiated by 12 countries, including the US, promises radical tax cuts for Vietnam’s garment exports, but only if they use fabric made locally or in other TPP countries, which excludes China. Such conditions are motivating companies to produce more and more items in Vietnam itself. The race is on for Vietnam’s clothing makers to find the right suppliers; its own textile mills only produce a fifth of the country’s needs today.
