Vietnam Joins CPTPP, China Textile Ushering In New Challenge

The comprehensive and progressive p Pacific Partnership Agreement (CPTPP, ComprehensiveProgressiveTrans-PacificPartnership) came into force in Japan, Canada, Australia, New Zealand, Mexico and Singapore in December 30, 2018, and came into force in Vietnam in January 14, 2019.

In addition, Brunei, Chile, Malaysia and Peru will implement the agreement 60 days after the completion of the agreement approval process.

It is reported that the CPTPP agreement occupies 13% of the global gross domestic product (GDP) and involves over 500 million of the population.

After the formal entry into force of CPTPP, Japanese officials told the media that in 2019, Thailand and Britain could join the negotiation of this Agreement and become the new signatory of the agreement.

The impact of CPTPP on Vietnam's economy depends largely on Vietnam's ability to seize opportunities and overcome challenges.

CPTPP phased out 98% of tariffs on agricultural and industrial products, relaxed investment regulations and strengthened protection of intellectual property rights.

Joining the CPTPP brings Vietnam an unprecedented market, "Vietnam makes" or becomes the biggest winner.

The Vietnamese people in this land are not only industrious but also energetic. At present, about 30 million of the young people are in China, and the trend of population aging in China is obvious, while the Vietnamese population is relatively young.

For a long time, Vietnam will maintain this advantage and enhance the competitiveness of its workforce.

In the textile field, "MadeinVietnam" is now quietly occupying the "MadeinChina" market.

In 2009, Nike's Vietnamese foundries completed a complete overtaking of China's capacity. In 2012, the last Chinese mainland factory in Suzhou was closed in 2012; in April 2018, UNIQLO announced that China's capacity was shifting to Southeast Asia, and Vietnam would bear 40% of the total production.

More than just foreign brands, with the attraction of cheap labor, many shoe and garment enterprises, which originally had roots in Guangdong and Fujian, set off a boom in moving factories to Vietnam.

Chinese textile and garment enterprises also accelerated the pace of pferring to Vietnam.

Bosideng, a Chinese manufacturer and seller of down garments, will also expand its production in Southeast Asia.

Bosideng began to pilot production in Vietnam textile factory related to Itochu's business, and plans to further expand production according to production trends.

The reason for the pfer is not complicated, because the labor cost to Vietnam can be reduced by nearly 5.

Vietnam's production workers earn an average of 216 dollars per month.

Moreover, according to world bank data, Vietnam is one of the largest labor force in Southeast Asia, with 57 million 500 thousand workers, while Malaysia and Philippines are 15 million 400 thousand and 44 million 600 thousand respectively.

Under the background of Sino US trade friction, China's foreign trade orders are struggling, but Vietnam is striding forward. This can not but cause the industry to be vigilant.