According to Vietnamese media reports in June 10 and 19, in order to reach the turnover target of 10 billion dollars in the next five years, Vietnamese textile enterprises have put forward solutions such as expanding production, increasing technical investment in production lines and improving the self-sufficiency rate of raw materials.
There is no doubt that TPP will bring new opportunities to Vietnam and give Vietnamese textile enterprises more development opportunities, but at the same time, Vietnamese textile enterprises are also facing tremendous pressure and challenges.
Can "Made in Vietnam" textiles reach a new historical height?
Clothing export tax may drop significantly 12%-32%.
A few days ago, Reuters reported that Washington intended to broker an agreement. According to this agreement, Viet Nam will become one of the big winners among the members of the Trans-Pacific Strategic Economic Partnership Agreement (TPP), and will gain some clothing market share from China and other non-TPP members. Mexico or Central American countries will not benefit from it.
Today, due to regional trade agreements, half of the yarn and cloth products in the United States are exported to the south of the border, and the cheap labor there is used to make clothes. In most cases, these clothes will become duty-free goods that American consumers "buy back".
Clothing industry is a priority industry in Vietnam. But the clothing industry is just one of many problems that other countries need to consider. In return for supporting Washington on textiles, these countries may seek concessions in other areas.
Other countries that have joined or will join the TPP include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru and Singapore.
The treatment of different industries depends on the economic impact of the United States. In fact, this will mean that the relevant parties need to wait longer to reduce the tariffs on cotton fabrics such as underwear and men's knitted shirts. Central American countries have more market share in these fields. China's superior products, including down jackets and synthetic fiber garments, will soon reduce relevant tariffs, thus bringing certain advantages to Viet Nam.
In fact, even though tariffs have increased the cost of its products by one third, Vietnam's exports to the United States have increased by 38% since 20 10. According to the relevant model of Peterson Institute for International Economics, researchers predict that by 2025, Vietnamese exports will further increase by 46%, while Mexican, China and Indian exports will decrease.
It is expected that higher labor and environmental standards stipulated in the new agreement will push up production costs in Vietnam. However, only considering labor costs, the United States and Central American countries cannot compete with their Asian rivals.
In the middle of 20 14, China's share in the American clothing market dropped from more than 39% in 20 10 to less than 37%. And Vietnam's share in the American clothing market has increased to more than 10%.
Julia Hughes, head of the American Fashion Industry Association, said, "Vietnamese clothes are already cheaper than those in China. However, after the implementation of the preferential tax-free policy, its tax amount may drop significantly 12% to 32%. This will make a huge difference. "
China's Ministry of Commerce did not respond to questions. The China Chamber of Commerce for Import and Export of Textiles declined to comment.
TPP drives foreign-funded enterprises to invest in Vietnam
Because the tariff reduction of TPP is conditional, the main manufacturing processes such as textile, weaving, printing and dyeing must be carried out in TPP member countries. In order to enjoy the tariff reduction and exemption policy, many enterprises are actively moving their factories to Vietnam. 20 13 the income of some garment manufacturers increased by 50%.
The growth trend covers all of Vietnam. In the first quarter of this year, Vietnam's textile exports increased by 20%. Textile enterprises in many countries and regions around the world have set up production plants in Vietnam, or are accelerating the pace of entering Vietnam, many of which are OEM for international brands. However, it has also been reported that because Vietnamese garment manufacturing enterprises have no large-scale capital reserves, it is difficult to invest in establishing their own yarn and textile factories, mainly relying on China and other Southeast Asian countries. Some economists pointed out that in the textile and garment industry, the signing of TPP will mainly benefit foreign enterprises investing in Vietnam, not local enterprises in Vietnam.
Now, Thailand Garment Manufacturers Association has regarded Vietnam as an attractive investment destination. Vietnam's People's Daily1October 28th 10 reported that the Thai Garment Manufacturers Association said that the import tariff imposed by the EU on Thai textile and garment products would be raised from the current 9.6% to 12%, which would make Thai textile and garment products lose competitiveness to some extent. In view of this situation, Thai textile and garment enterprises are planning to transfer their production lines to neighboring countries such as Vietnam and Myanmar, which have low labor costs and enjoy the General Preferential Tariff System (GSP). At present, about 30 Thai textile and clothing manufacturers have set up second production plants in neighboring countries, mainly in Vietnam and Cambodia.
It is reported that Shenzhou International, a manufacturer of knitted apparel products in China, recently stated in its interim report that harsh trade policies and rising manufacturing costs of major importing countries are squeezing market share. The company plans to build a fabric and clothing factory in Vietnam. Other Chinese-funded enterprises are also interested in taking Vietnam as their base, such as Vietnam Rainbow Textile and Huzhu Textile.
Will "Made in Vietnam" crowd out "Made in China"?
According to Reuters, some industry experts believe that TPP will stimulate further changes in global textile and clothing trade. In 20 10, China's share in the American clothing market was 39%, which fell below 37% in the middle of 20 14, while Vietnamese's share in the American clothing market has climbed to more than 10%. "The manufacturing cost in Vietnam is already lower than that in China, and the tax exemption at that time may provide a tax reduction of 12%-32%, which has a huge impact." JuliaHughes, president of the American Fashion Industry Association, said.
According to Krista Hughe, a reporter from Reuters, if the United States can get its wish in the TPP negotiations, then "Made in China" will be less common in American clothing stores.
In terms of exports, according to statistics from the General Administration of Customs of Vietnam, in the first nine months of this year, Vietnam's national textile knitwear exports were about15510.90 billion US dollars, up by 18.9% year-on-year. Fan Chunhong, vice president of Vietnam Textile and Apparel Association, said that after Vietnam joins the TPP, Vietnamese enterprises will enjoy more preferential tariffs, so this is also the driving force to help Vietnamese enterprises expand their export market, especially the US market share. By then, it will be relatively easy for some large enterprises in the industry to reach the turnover target of $654.38+0 billion within five years.
However, today's textile industry in Vietnam still relies heavily on imports in the fields of raw materials and accessories. The competitiveness of Vietnamese enterprises is actually relatively weak.
Therefore, Fan Chunhong said that in order to vigorously develop raw materials and accessories in Vietnam, Vietnamese textile enterprises should strengthen close cooperation in the manufacturing process of fiber-textile-printing and dyeing-sewing, and gradually shift the production form from FOB (raw material procurement, semi-finished products) to ODM (independent design, production and sales of products). Only in this way can Vietnamese enterprises achieve sustained and healthy development in the fierce market competition.
interconnection
The export of textile machinery products to Vietnam has increased rapidly.
After last year's "cold current", China's textile exports showed obvious signs of recovery in the first half of this year, and the export growth rate of textile raw materials, products and textile machinery all showed a recovery growth.
Data show that in the first half of this year, China exported 654.38+023.26 billion US dollars of textile raw materials and products, a year-on-year increase of 654.38+02%. Among them, the export of natural fiber products115.4 billion US dollars, up14.6% year-on-year; The export of chemical fibers and industrial textiles was $654.38+0.999 billion, up 8.1%year-on-year; The export of clothing and accessories was 9010.72 billion USD, a year-on-year increase of 12.6%. In addition, the export value of textile machinery products in China in the first quarter was US$ 65,438+01700 million, an increase of 7.5% over the same period last year.
In the first half of this year, China's clothing and accessories exported 90172 million US dollars, an increase of 12.6% over the same period last year. Among them, exports to the EU were US$ 65,438+0.810.7 billion, up 3.3% year-on-year; In the same period, exports to the United States and Japan were US$ 654.38+0.565 billion and US$ 654.38+0.093 billion, up by 7.5% and 0.3% respectively. The total exports to the above three markets accounted for 48.8% of the total exports of China's clothing and jewelry products in the same period.
In addition, in the first half of this year, China's textile machinery products exported11.70 billion US dollars, up 7.5% year-on-year. Among them, the export to India was USD 240 million, up by 16.3%, and the export to Vietnam was USD 1. 1 billion, up by 1.3 times.
Bangladesh revitalizes garment industry
Recently, HSBC released a trade forecast report, pointing out that in 2020, the growth rate of Bangladesh's textile and garment exports will increase from 2.8% in 20 10 to 3.8%. Bangladesh's clothing exports will continue to grow in the next 10 year.
So far, it has been a year and a half since several garment factories in Sawar Town, a suburb of Dhaka, the capital of Bangladesh, closed down. 1 100 More than one worker was killed, and the factory safety protection measures were backward, which caused endless comments questioning the national production safety and the development prospects of the industry. The problem of factory safety in this country has also had a negative impact on the development of its clothing industry. Recently, the Bangladeshi government said that in order to cope with this situation, Bangladesh textile and garment factory has issued new laws and regulations to strengthen the safety regulations and standards of garment factories, which will help strengthen the cooperative relationship between Bangladesh and international buyers and promote the industry to expand production. Since 20 13 and 12, the factory has increased the minimum wage of garment workers by 77%, which has increased the cost of enterprises. However, people in the industry predict that the Bangladeshi garment industry will remain competitive in the global market.