Textile companies keep an eye on Vietnam market

According to Japanese media reports on February 5, relevant Chinese companies are showing strong interest in Vietnamese textile companies. They hope to use Vietnam as an export base to the United States once the Trans-Pacific Strategic Economic Partnership Agreement takes effect.
The Trans-Pacific Strategic Economic Partnership is a set of multilateral free trade agreements initiated by member states of the Asia-Pacific Economic Cooperation Conference and started in 2002. It aims to promote trade liberalization in the Asia-Pacific region.
The “Pan-Pacific Partnership” spawned by the United States, the main members and the countries negotiating for membership are mostly composed of countries in the capitalist system (Vietnam is the only member of the socialist country), and at the same time it has a crowding-out effect on the People’s Republic of China; while the “Pan-Pacific Partnership” “The situation of “containing mainland China” seems to be competing with the “ASEAN 6 (China, Japan, South Korea, Australia, New Zealand and India)” spawned by the People’s Republic of China, and it has become a struggle between China and the United States to win over Asia-Pacific economic and trade entities. However, as China develops and becomes stronger, this situation has gradually begun to be reversed. On May 16, 2013, Frank Sanchez, deputy secretary of the U.S. Department of Commerce, said in an interview with Nikkei Business News: “China is welcome to join,” and he particularly emphasized that he did not exclude China. At the same time, some textile manufacturing companies have also increased investment in Vietnam. Because Vietnam participated in the negotiations for the Trans-Pacific Strategic Economic Partnership Agreement. If an agreement can be reached through negotiations, the United States is likely to eliminate tariffs on Vietnamese textile and sewing products. According to the report, in order to meet the tax-free conditions under the Trans-Pacific Strategic Economic Partnership Agreement, clothing exported from Vietnam must comply with relevant origin regulations, which means that the yarn used in these clothing must be produced in Vietnam.
The economic development of the United States urgently needs to promote employment and exports, and requires balanced growth. Among many markets, the Asian market is crucial. With the investment intensity of Chinese manufacturing enterprises in the member countries of the Trans-Pacific Strategic Economic Partnership Agreement, the development of enterprises will surely be promoted in the future, the export of textile products to the United States will be expanded, the employment problem will be reversed, and a win-win situation will be achieved.