CPTPP Im­pact: Vietnam ex­pects dou­ble-digit growth in ap­parel ex­port to Aus­tralia

Apparel Online - - Beyond India -

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.