Hanoi (VNA) - The Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to comeinto force in early 2019, which will open up numerous opportunities forVietnamese garment-textile sector.

According to the Vietnam Textile and ApparelAssociation (VTAA), the industry could access many markets with huge potential,including those with which Vietnam has yet to sign free trade agreements (FTA).

Under the CPTPP, import tariff on most productswill reduce to zero over the course of seven years, which will help businessesachieve high economic efficiency and increase competitiveness.

Garment-textile firms will be also able to makeuse of raw material supply and learn about production technology and managementskills from CPTPP member countries.

To realise an annual export growth of 10percent, the sector needs to make best use of markets of member countries ofthe trade deal.

The pact will provide new opportunities forbusinesses in both export and import. For example, currently Vietnamese apparelmakers have to rely on materials imported from China, Japan and the Republic ofKorea. With the CPTPP, enterprises could import material from other CPTPPcountries such as wool from Australia.

In order to capitalize on opportunitiespresented by the CPTPP, enterprises will need strong support from Statemanagement agencies. On their part, the enterprises must spare no effort topenetrate into the markets, first of all by studying thoroughly their targetmarkets. They should also invest in modern machines and sharpening skills forworkers.

The original Trans-Pacific Partnership (TPP) wassigned by 12 countries in February 2016 but US President Donald Trump pulledhis country from the deal upon taking office in January 2017. 

The remaining 11 countries, namely Australia,Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singaporeand Vietnam, continued to sign the pact and renamed it the CPTPP in March 2018in Chile.

The pact, which delivers a strong messageagainst the protectionism in the world, is expected to boost economic growth,create more jobs, reduce poverty and improve the quality of life for people inmember countries.

The deal will create one of the world’s largestfree trade blocs with a combined market of 499 million people and GDP of around10.1 trillion USD, accounting for 13.5 percent of the global GDP.

More than 2,000 foreign businesses from 16countries and territories worldwide have invested some 15.75 trillion USD inVietnam’s garment and textile sector so far, according to the VTAA.

The total textiles and garment import turnover of theCPTPP member countries exceeded 53 billion USD in 2017.

Vietnam earned over 4.8 billion USD fromexporting textiles and garments to the other CPTPP member nations in 2017,making up 9.07 percent of the market share.-VNA