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Vietnam export to grow inspite of US's withdrawal from TPP

Vietnam's garment and textile sector is going to enjoy a  good growth in exports to the US market even without the Trans-Pacific Partnership (TPP). While the sector is forecasted to benefit greatly from the TPP, it has so far thrived without TPP with Vietnam holding the second-biggest market share in the US and Japan.  These two countries are also the two main export markets for Vietnam's garment and textile.

                Enterprises in the sector have continuously made investment in machines and technology to improve their productivity, reduce cost, thus increasing their competitiveness in the two markets. Apart from TPP, Vietnam has signed and will sign a dozen of free trade agreements (FTAs) this therefore will help Vietnam even after US's withdrawal from the TPP and will not affect the sector.

                He dismissed opinions that foreign investors are pouring into Vietnam's garment-textile sector in anticipation of the TPP, saying that the agreement is only one of the reasons behind the investment. Vietnam also attracts investors with an open economy, a favourable business climate and tax incentives from the World Trade Organisation (WTO) and FTAs with EU, Japan, and the Republic of Korea.

                However the concern is that when the TPP may not be realised, there are possibilities that investors will suspend their investment decision. Therefore, the investment flow in the sector will slow down during 2017-2018 as compared to 2013-2014.

Despite everything in 2017, Vietnam's textile-garment sector aims for a growth rate of 7-8 percent, and 30 billion USD in export earnings.

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