Viet Nam's garment and textile export turnover to countries taking part in the Trans-Pacific Partnership (TPP) negotiations increased by 69.66 per cent in the first five months compared with the same period last year, according to the latest report from the Viet Nam Textile and Apparel Association (Vitas).
Exports to this market also accounted for 66.8 per cent of the sector's total export turnover.
Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Viet Nam are members of the TPP.
Exports to the US ranked top with US$4.05 billion, accounting for nearly 50 per cent of the export value to the countries joining the TPP agreement, a 53 per cent increase on the year.
Viet Nam's textile and garment export turnover to the US is expected to reach $11 billion by the end of the year, Dang Phuong Dung, Vitas deputy chairwoman told Hai Quan (Customs) newspaper.
Textile and garment export turnover to the US has increased dramatically in the past 20 years from zero to $9.8 billion in 2014.
The turnover could be doubled once the TPP is signed, she said, adding that it would benefit local enterprises. Garment products' import taxes would be reduced by 7 to 8 per cent, replacing the current 15 to 16 per cent.
However, the TPP would also require information about the goods' origins, which is difficult for domestic firms. Viet Nam's textile and garment sector needs improvement when it comes to naming raw material sources.
The chairwoman called for ministries, society and the Government to help attract foreign investment, and encourage relationships between domestic producers and raw material producers.
Only by doing those things could Viet Nam satisfy the requirements on goods' origins, she said.
According to the newspaper, US Fashion Industry Association President Julia K Hughes said many US companies were willing to seek supply sources from nations joining the TPP agreement once it took effect. Viet Nam was ranked highest in terms of its ability to draw new businesses, Hughes said, so she advised Viet Nam utilise its new opportunities.
Vitas forecast that the country's textile and garment export turnover could reach $27.5 to $28 billion this year.