Us: Vietnam Will Take Away A Lot Of Clothing Market Share From China.

If U.S.A In the negotiation of the trans Pacific Strategic Economic Partnership Agreement (TPP), the "made in China" will no longer be so common in American clothing stores.

The aim of the United States is to reach an agreement that allows Vietnam to become a big winner among TPP members, so that Vietnam can win market share from China and other non TPP members, rather than compete for market share from the US and the US.

At the moment, thanks to the regional trade agreement, half of the yarn and textile exports in the United States flow to the south of the border, and then use cheap labor to produce garments, most of which are sold to the US market at last, and there is no tariff.

Many businesses in the American yarn and textile industry are worried that TPP will undermine this business model. The scale of the cotton yarn and textile industry in the United States amounted to US $57 billion. This business model helped the industry out of the ten year downturn and supported more than 1 million 500 thousand jobs in the region.

A US official who asked for anonymity said that tools like the rules of origin and the differential schedule of tariff reductions can not only protect the interests of the region, but also attach importance to Vietnam.

Americans who understand the TPP negotiations are convinced that Vietnam can grab considerable market share from China and other countries without trade preferences.

"If TPP hurts the US and China, it will have a devastating effect on the local industry," said Bill Jasper, executive director of Unifi, a synthetic yarns manufacturer.

"If we can organize negotiations wisely and wisely, I think China will suffer most of the impact, not the region."

　　 Clothing industry Vietnam is a priority issue, but for other countries, it is just one of many problems. They may seek concessions in other areas in exchange for the support of the United States for the textile industry. Vietnam? Another round of TPP negotiations is being held this week.

Other countries participating in TPP include Australia, Brunei, Canada, Chile, Japan, China, Hong Kong, New Zealand, Singapore and Singapore.

Many industry insiders and experts believe that TPP will stimulate further changes in the global textile and clothing trade.

China's share in the US apparel market in 2010 was 39%, which has dropped 37% in the middle of 2014, while Vietnam's share in the US apparel market has climbed to over 10%.

"Vietnam's manufacturing costs are lower than that of China, and the duty-free concessions at that time may provide 12-32% tax cuts, which will have a huge impact," said JuliaHughes, chairman of the American Fashion Association.

Reuters asked the Chinese Ministry of Commerce and the China Textiles Import and export chamber for comment. The former did not reply, and the latter declined to comment.

In an interim report last week, Shenzhou International, a manufacturer of knitted apparel products in China, said that the trade policy of the major importing countries and the rising manufacturing costs were squeezing the market share. The company plans to set up a fabric and garment factory in Vietnam.

Other Chinese funded enterprises are also planning to use Vietnam as a base, such as Tianhong textile and mutual textile.