CPTPP likely to increase garment exports to Australia.
Expo: VTG - Vietnam Int'l Textile & Garment Industry Exhibition
HÀ NỘI — Việt Nam’s turnover from textiles and garment exports to Australia is predicted to reach a double-digit growth after the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
This was said at a workshop in Hà Nội on May 9.
Jointly held by the Vietnam Textile and Apparel Association (VITAS) and the IEC Group of Australia, the event focused on measures to help Vietnamese textiles and garment enterprises increase exports to Australia.
According to Nguyễn Phúc Nam, deputy director of the Department of Asia-Pacific Market under the Ministry of Industry and Trade, Australia is a potential market for Vietnamese textiles and garment exporters, although the market share of Vietnamese products in Australia remains small.
Trương Văn Cẩm, vice chairman and secretary general of VITAS, said the current growth of textiles and garment exports to Australia was just below 10 per cent, but with the signing of CPTPP, the rate was expected to reach a double-digit growth.
Reports presented at the workshop showed that total textiles and garments import turnover of the CPTPP member countries exceeded US$53 billion in 2017, of which Australia was the third-largest import market, with a total turnover of over $6.2 billion, accounting for 11.67 per cent.
Việt Nam earned over $4.8 billion from exporting textiles and garments to other CPTPP member nations in 2017, making up 9.07 per cent of the market share.
As committed in CPTPP, Australia will reduce its import duties to 5 per cent in the first three years after the agreement comes into effect and to zero per cent from the fourth year for almost all products.
Moreover, Australia is gradually shifting to importing and outsourcing of textiles and garment products in Việt Nam because of cheaper labour cost and lower tax rates than in China.
Cẩm said Australia’s textiles and garment import turnover grew by 3 to 5 per cent annually in the past five years. In 2017, the country imported some $9.32 billion worth of textiles and garment products from various countries. Việt Nam’s exports to Australia reached only $173 million, equivalent to just 1.9 per cent of its total textile import turnover.
Việt Nam is facing serious competition from China as the latter’s textiles and garment market share in Australia amounts to 60 per cent.
According to Trần Văn Quyền, a representative of Woolmark Company of Australia in Việt Nam, the purchasing power of Australian consumers is even higher than that in the United States and Europe. However, orders from Australia are usually small because Australian firms operate in the form of online businesses, so they usually order in small quantities to avoid a large inventory.
Large Vietnamese enterprises are not interested in small orders, while small firms do not have a social responsibility certificate to qualify for exports to Australia.
To get better access to the market, Vietnamese businesses should enhance promotion and study more to understand its characteristics, Nam said. — VNS
- Safer trucks handed over for garment workers CTG / 2018-05-23
- ATLife visitor pre-registration is now open ! ATLife / 2018-05-18
- BGMEA president demands special trains to Ctg Dhaka Int'l Textile& Apparel Accessories Exhibition / 2018-05-15
- Taiwan Digital Signage Awards 2018 Display International / 2018-05-12
- Gold Panel Awards 2018 Display International / 2018-05-12
- Chinese investors eye garment sector MTG / 2018-05-09
- EU, U.S. reluctant to remove trade preferences for Cambodia garments: Fitch's BMI CTG / 2018-05-09
- Wood exports to hit record high VIETNAMWOOD / 2018-05-09
- Bangladesh takes over global denim markets Dhaka Int'l Textile& Apparel Accessories Exhibition / 2018-05-09
- Myanmar Timber Enterprise targets higher sales, commercial restructuring Myanmar Wood / 2018-05-08
- Myanmar and South Korea to increase trade and investment Myanmar Wood / 2018-04-30
- Party chief: Vietnam wants to expand cooperative ties with Myanmar MTG / 2018-04-27
- Future bright for VN’s woodworking industry VIETNAMWOOD / 2018-04-27
- A close look at the garment industry with GMAC’s John Cha CTG / 2018-04-27
- Bangladesh still popular for low-cost apparel Dhaka Int'l Textile& Apparel Accessories Exhibition / 2018-04-27
- Online Registration Open! ATLife / 2018-04-25
- Myanmar takes another step to join EU-led forest protection agreement Myanmar Wood / 2018-04-19
- BGMEA celebrates graduation to developing country Dhaka Int'l Textile& Apparel Accessories Exhibition / 2018-04-19
- Garment industry gears up for rise in minimum wage MTG / 2018-04-19
- CDC gives nod for 9 new textile & footwear projects CTG / 2018-04-19