After 5 years since coming into effect, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has played an important role in promoting Vietnam's trade with markets in the Americas, especially member markets including Canada, Mexico, Chile, and Peru (in which Canada, Mexico and Peru are the markets that have FTA relations with Vietnam for the first time).
Statistics from the General Department of Customs show that total import-export turnover to CPTPP markets in the Americas increased by 56.3%, from 8.7 billion USD in 2018 to 13.6 billion USD in 2023, despite this being a challenging period such as the global economic recession and the Covid-19 pandemic.
Of which, Vietnam's exports to these markets nearly doubled, from 6.3 billion USD in 2018 to 11.7 billion USD in 2023. Trade surplus in these markets also increased nearly 3 times, from 3.9 billion USD to 11.01 billion USD, contributing positively to Vietnam's macroeconomic stability in recent times.
This result has contributed significantly to Vietnam's trade with the Americas region in general, with total import-export turnover in 2023 reaching 137.7 billion USD, of which Vietnam exported 114.5 billion USD.
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| One of the industries that is benefiting the most from the CPTPP Agreement is textiles and garments. Photo: Quach Tuan |
Notably, according to the Ministry of Industry and Trade, one of the industries that is benefiting the most from the CPTPP Agreement is textiles and garments. Data from Vietnam Customs shows that Vietnam's textile and garment export turnover to 10 CPTPP partner markets in July 2024 reached 660.11 million USD, up 22.58% over the previous month and up 10.86% over July 2023. In the first 7 months of 2024, export turnover to CPTPP member markets increased by 6.94% over the same period, reaching approximately 3.66 billion USD, accounting for 18.05% of Vietnam's total textile and garment export turnover to all markets.
Of which, textile and garment exports increased the most in the Mexican market. In the first 7 months of 2024, although textile and garment exports to Mexico accounted for only 3.25% of the total export turnover of the industry to CPTPP member partners, they increased by 31.84% compared to the same period in 2023.
“ Since the CPTPP Agreement came into effect, textile and garment exports to Mexico have increased sharply. In comparison, the textile and garment export turnover to Mexico in the first 7 months of 2024 reached the highest level of 119.06 million USD, an increase of 119.58% compared to the level of 54.22 million USD in the first 7 months of 2018 (before the CPTPP came into effect) and an increase of 71.38% compared to the level of 69.47 million USD in the first 7 months of 2019 (the first year the CPTPP officially came into effect) ” - The Center for Industry and Trade Information (Ministry of Industry and Trade) informed and cited more evidence, Mexico mainly imported textile and garment groups with HS code 61 (garments and garment accessories, knitted or crocheted) and HS code 62 (garments and garment accessories, not knitted or crocheted). Vietnam is Mexico's second largest supplier of HS 61 and third largest supplier of HS 62.
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| Mr. Vu Duc Giang - Chairman of Vietnam Textile and Apparel Association (Vitas) informed the press about textile and garment export activities through CPTPP. |
Commenting on textile and garment exports to CPTPP markets, Mr. Vu Duc Giang - Chairman of the Vietnam Textile and Apparel Association (Vitas) - affirmed that the CPTPP Agreement has created great opportunities for the Vietnamese textile and garment industry to access new markets such as Canada, Australia, and New Zealand.
Not only that, the agreement has been helping textile and garment manufacturing and exporting enterprises adapt to the purchasing methods of importers in the CPTPP bloc. With requirements on certificates of origin, the agreement has helped enterprises improve the quality of production from input materials.
Contributing to these positive growth results, in recent times, the Vietnam Textile and Apparel Association has played an important role in connecting the supply chain, linking domestic enterprises and manufacturers, investors in the CPTPP bloc. At the same time, accompanying and supporting enterprises in building a development strategy to diversify markets, customers and apply technology, automation, and renewable energy to adapt to the requirements of countries in the CPTPP bloc.
However, Vitas Chairman Vu Duc Giang said that the domestic textile and garment industry is facing major challenges when exporting products to the CPTPP market due to competitive pressure from other markets. Compared to Bangladesh, Vietnam faces higher labor costs and pressure on social and health insurance. Meanwhile, Bangladesh enjoys tariff incentives as a less developed country, while Vietnam must synchronously implement commitments in new-generation free trade agreements.
However, comparing Vietnam's competitive advantages with Bangladesh, Vietnamese textile and garment enterprises have an advantage thanks to their geographical location, large port system, and ability to produce a variety of high-value products such as vests, winter coats, swimwear, etc. with diverse designs and fast delivery.
“Vietnam's textile and garment industry is expected to achieve an export turnover of about 43-44 billion USD in 2024. To better utilize tariff incentives and boost exports to the CPTPP, businesses need to continue to focus on promoting technology investment, optimizing production and supply processes, and deeply participating in the OBM (original brand manufacturing) or ODM (original design manufacturing) value chain to create sustainable competitive advantages compared to other countries ” - Mr. Vu Duc Giang recommended and committed that the Vietnam Textile and Apparel Association will always accompany and support textile and garment businesses to maximize the benefits of the CPTPP Agreement, while overcoming barriers to sustainable development.
Source: https://congthuong.vn/hiep-dinh-cptpp-buoc-dem-dua-det-may-viet-nam-vuon-minh-sang-cac-thi-truong-moi-349796.html
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