Vietnam garments and textile sector is viewed as one of the industries which will benefit the most from the Trans-Pacific Partnership (TPP), many businesses are striving hard to stay ahead to avail opportunities ushered in by TTP and have started proactively putting in place measures to be able to avail these opportunities such as investing in modern production lines, upgrading facilities, improving design and product quality and finding access to the market.
Following the signing of the TPP, the "Made in Vietnam" products would enjoy a zero percent tax instead of the current 7-32 percent when exporting to the US.
Specifically, six garments and textile businesses listed on the stock exchange have recorded strong growth in terms of both revenue and profits in the second quarter of this year. Total net revenue of these six businesses in the second quarter reached more than VND1.8 trillion (US$79.9 million), a year-on-year rise of 20.74 per cent.
Their total after-tax profit amounted to nearly VND110 billion ($4.88 million), a year-on-year increase of 29 percent.
Thanh Cong Trade Investment and Garment Joint Stock Company continued to lead the sector with the highest amount of turnover and profit. It recorded a net revenue of nearly VND730 billion ($32.4 million) in the second quarter and an after-tax profit of nearly VND53 billion ($2.35 million), a year-on-year rise of 9.96 per cent and 13.4 per cent, respectively.
The company is investing in a weaving-dying-garment factory with a total investment capital of $30 million during the 2014-17 period.
TNG Trade and Investment Joint Stock Company is another example. The company reaped a net revenue of VND500 billion ($22.2 million) in the second quarter and an after-tax profit of nearly VND16 billion ($710,000), a year-on-year rise of 56 per cent and 42 per cent, respectively.
TNG has put into operation one more cotton production line, worth more than VND40 billion ($1.77 million) having a capacity three times higher than that of the current production line of the company.
Nguyen Minh Hoa, a representative from the DHA Garment Export Company said that the company had enlisted many steps such as studying products suitable for different markets and chooses channels to buy raw materials for producing products meeting requirements of quality and origin.
Vietnamese businesses have actively expanded markets in recent years. At present, the US and EU remain the top export markets for Vietnamese garments and textile businesses.