The US become a potential export market of many Vietnam recycled fiber manufacturing enterprises when the Trans-Pacific Economic Partnership Agreement (TPP) takes effect.
Mr. Christopher Griffin – President of Sourcing at Magic (USA) said that Vietnam is 2nd in recycled fiber exports to the US market with an export growth rate of 12.3% in 2014. It is worth noting that while countries exporting fiber to the US (including China) all have negative growth, Vietnam has still achieved quite high growth in recent years.
From textile export information
According to Ms. Nguyen Thi Tuyet Mai – Head of the Representative Office of the Vietnam Textile and Apparel Association in Ho Chi Minh City, currently more than 60% of Vietnam Recycled Fiber products exported to the US and Japan – two key markets in TPP negotiations. with an average tax rate of over 17%. After TPP assignment, Vietnamese recycled fiber manufacturing enterprises will have many opportunities to increase exports to these countries with the promised tax rate of 0%. In addition, businesses can improve production and business efficiency to overcome the requirements of the Agreement and the technical barriers that countries are erecting to protect production of respective domestic industries.
To take advantage of the above opportunity, Mr. Nguyen Van Can – Head of Research and Development Department of Corporation 28 Company Limited said that this enterprise has sought a plan to co-operate with a Japanese partner (TPP member) to production of raw materials. According to the plan, Garment Corporation 28 signed a 10-year cooperation contract with Sotoh Group on wool fabric production. Sotoh will invest in equipment and output for high-end fabric products, while Corporation 28 will take care of factory premises and production. From the new cooperation agreement, this company expects that the traditional markets under TPP will increase to 60% in the near future, currently accounting for 30% Vietnam Recycled Fiber.
However, the Vietnam Textile and Apparel Association believes that to make good use of this opportunity, we must strengthen the connection between domestic and industry manufacturers with raw material suppliers to take advantage of finished products. Only then can Vietnamese enterprises satisfy their origin and benefit from TPP as well as other free trade agreements.
About VIETNAM RECYCLED FIBER
VIETNAM RECYCLED FIBER We partner with numerous factories and manufacturers in Viet Nam and other Asian countries. We supply various and different polyester staple fiber such as hollow conjugate siliconized and non-siliconized, hollow non conjugated fiber, hollow slick fiber, black solid fiber, brown fiber, green fiber, filling fiber, polyester fiber, recycled polyester fiber, spinning fiber. All are GRS and OEKO TEX certified.
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