In the context of the absence of the Trans-Pacific Partnership (TPP), US textile and garment companies are finding their own opportunities to invest in Vietnam.In late October, the American Apparel and Footwear Association (AAFA) and the American Chamber of Commerce in Vietnam (AmCham Vietnam) organized a series of activities in Ho Chi Minh City.
According to the information shared at the program, the growth rate of exports from Vietnam to the US continues to outstrip competitors, although not benefiting from any preferential trade programs or free trade agreement.
According to the AAFA, garment imports into the United States from Vietnam increased by 8.74%, footwear increased by 11.83% in the last 12 months, and Vietnam is the second largest exporter to this market, after China. Retailers and consumers in the United States see the strengths in quality, price and delivery commitment of Vietnam. This is also the reason that AAFA and US businesses come to Vietnam.
According to the regional director of Hanes Brands (USA), after 10 years of presence in Vietnam, the total investment of this group is about 55 million USD, with 3 factories in Thua Thien Hue and Hung Yen. Production capacity of Hanes Brands Vietnam currently accounts for about 20% of the Group’s total global production. Vietnam is identified as Hanes Brands’ manufacturing base in South East Asia, in which the Hue factory is equipped with the most modern technology and equipment.
According to a senior adviser at Alston & Bird LLP, despite the absence of TPP, there are other opportunities for Vietnamese textiles and footwear. Accordingly, the programs that businesses should pay attention to are: the Regional Comprehensive Economic Partnership (RCEP), the European Union – Vietnam Free Trade Agreement (EVFTA), the Belt Road Initiative (BRI), the Vietnam – China Strategic Partnership (Two Corridors and one Economic Belt)…