Post the signing of Trans-Pacific Partnership (TPP) agreement, it was expected that Vietnamese textile and apparel companies would gear up to reap benefits out of it in order to increase their textile and apparel exports to international markets like USA, Japan, Australia, etc. But the gist appears to be bit different than expected as only a few are working in full swing to make gains from TPP.
Capitalizing on the development, Pham Xuan Trinh, CEO of Phong Phu, informed a daily that his company would further increase its production capacity. It will install an additional production line comprising machines for weaving, dyeing and sewing in the coming year. The line with a monthly production capacity of 300 tonnes of fibre will help the manufacturer increase its output and exports.
In another development it has been observed that awareness regarding TPP hasn’t really flourished across Vietnamese apparel and textile sector. As per the Ho Chi Minh City Association of Enterprises, only half of 200,000 small- and medium-sized enterprises in the city have information about the agreement.
Also Read – Vietnamese garment firms strive hard to benefit from TPP
Pho Nam Phuong, Head – HCMC Centre for Trade and Investment Promotion avers that many firms are not interested in the TPP agreement and are not working on to take advantage of the deal, as their sole interest lies in surviving amid tough economic conditions of the country than in TPP. Reportedly, out of more than 2,000 garment companies that are present in Vietnam, only large companies are preparing to capitalize on TPP opportunities.
