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The golden opportunities for foreign investors joining in Vietnam’s textile sector since the TPP
The Trans - Pacific Partnership (TPP) has created many potential opportunities for foreign investors joining in Vietnam’ market, especially in the textile sector – the most profitable sector when the comprehensive trade agreement come into force according to the assessment of the Ministry of Industry and Trade. 

The attention of the TPP is spacious liberalization of goods and the import tax of Vietnam textile products to other TPP member countries shall be 0%. The TPP has opened up the chances for Vietnam to attract foreign investors in the textile sector because 60% of the textile products export turnover are exported to TPP member countries that the United States accounting for 43% and Japan accounting for 11%.  The statistical data showed that in May 7th, 2015, the textile products export turnover is 12.56 billion dollars increasing 9.9% from the same period last year. 

Beside, TPP also stipulates the Rules of Origin that the Vietnam’s products must be used by the materials in local or imported from any TPP Parties. Moreover, foreign investors completely believe that investing to the materials manufacture (e.g: manufacturing the threads, cloths…) is the best way to provide the required materials for the textile enterprises of Vietnam for getting the preferential tax rate and also extending the scale production for the Vietnam’s textile sector.  

Vietnam had been the advantage of low salary for the labours and the low input expensive also. But now, the TPP’s preferential treatment will create the “Golden” opportunities for the foreign investors to invest to the textile sector of Vietnam.

Phuong Uyen
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