In July, Vietnam's textile imports increased by 16.3%

In the first 7 months, Vietnam's textile and apparel exports increased by 16.3% year-on-year. At the same time, the import and export of raw materials for the textile and apparel industry reached US$7.6 billion, an increase of 18.2% year-on-year. The Ho Chi Minh City Trade and Investment Promotion Center in Vietnam believes that the increase in imports of raw materials is much higher than the increase in exports of textile and apparel products. This is the biggest test that Vietnam will face when it joins the TPP agreement and enjoys tariff reduction preferences.

According to the TPP agreement, textile and apparel products can enjoy zero tariffs only if yarn raw materials are taken from TPP member countries, but raw materials imported from Vietnam come from a number of non-TPP member countries. Some experts believe that Vietnam's textile and garment industry to join the TPP will bring opportunities, especially for exports to the US, but only if the expansion of US exports is to solve the over-reliance on imported raw materials. According to statistics, in 2012, Vietnam’s textile and garment exports to the United States reached US$7.4 billion, making it the second largest source of textile and apparel imports from the United States, with an 8% market share.