CPTPP Impact: Vietnam expects double-digit growth in apparel export to Australia
Vietnam is expected to increase its apparel and textile export revenue from Australia in double digits as both the countries are now a part of Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP) deal. This was announced in a workshop held recently at
Hanoi. The workshop was jointly organised by VITAS as well as IEC Group, Australia. Nguyen Phuc Nam, Deputy Director, Department of Asia-Pacific Market, which comes under the Ministry of Industry and Trade of Australia, said that the share of Vietnamese products in the Australian market is too less despite the fact that Australia is market of huge potential for the garment and textile sector of Vietnam. VITAS in its statement said that the present surge in the country’s garment and textile export to Australia is less than 10%. However, considering that both countries have signed CPTPP, it can reach double digits. Australia will now cut the import duties to 5% in the first 3 years of CPTPP and subsequently it will be 0%. Besides, Australia is now focused to outsource garment and textile products in Vietnam as the cost of labour is low here compared to China. Also, the tax rates too are lower in Vietnam. It is worth noting that the garment and textile market share of China in Australia is 60%. In last 5 years, there has been 3 to 5% surge in Australia’s garment and textile import turnover. Last year, Australia imported US $ 9.32 billion of garment and textile products globally, whereas Vietnam’s export to Australia was just US $ 173 million. It is important to note that generally the orders received from Australia are small as most of the companies do online business and therefore order is in smaller quantities.