CPTPP "opens up" opportunities for textile exports to Australia

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To maintain the export growth rate of 10% per year, taking advantage of opportunities to promote textile export to the CPTPP market in general and Australia in particular is very important. Photo: N. Thanh.

Exports account for less than 2%

Mr. Nguyen Phuc Nam, the Deputy Director of the Asia-Africa Market Department (under the Ministry of Industry and Trade), said that in 2017, Australia imported textiles and apparel products of about $US 9.32 billion from the world, about $US 173 million from Vietnam, accounting for about 1.9% of total import turnover. Australia's largest importers of apparel are mainly knitwear and non-knit garments.

According to Mr. Truong Van Cam, Vice President and General Secretary of the Vietnam Textile and Garment Association, Australia is a large market for textiles and garment, with an average annual turnover of nearly $US 9 billion. Prior to the CPTPP, there was only a FTA between ASEAN and Australia. For many reasons, the textile and garment industry has not exploited this market as expected. Enterprises can not determine what the market needs and Vietnam textile and garment has nothing to export.

Mr. Nam analyzed: It is expected that the CPTPP will officially come into effect from 2019. Under the commitments under the CPTPP, Australia will reduce import tax to 5% in the first year, second year and third year since the effective date of the CPTPP and to 0% from the fourth year since the effective date of CPTPP for most of the products in the group such as HS 6203, HS 6204, HS 6206. "Australia is a potential market for Vietnam's export textile products. Meanwhile, Vietnam now accounts for a relatively small share of imports in Australia in terms of textile and apparel products, and continues to expand beyond its reach", Mr. Nam said.

Mr. Cam added: "Textile exports to Australia reached more than $US 200 million on average annually. That's a modest figure. With the goal of developing in the coming time, to achieve the export growth of less than 10% per year, Vietnam's textile and garment industry must focus on exploiting the markets of the CPTPP, including Australia".

Do not look down on small orders

From the perspective of export enterprises, Mr. Thai Binh Duong, Director of Yen Duong Co., Ltd. said: Australia is a very difficult market with the textile and garment industry of Vietnam. Fashion in Australia is not as frisky as other countries, but the detail is complicated in needle points, and prices are different from other markets such as the United States, Japan. "Australian fashion looks simple, but in fact they are very sophisticated. However, Yen Duong Company has also exported its products to Germany. This is also a difficult market so the company confidently exports to Australia", Mr. Duong said.

According to Mr. Duong, CPTPP agreement will open new opportunities for businesses in the Australian market in both export and import. At present, the source of raw materials imported from the textile industry is still restricted, mostly imported from China, Japan, Taiwan and South Korea. When expanding, the company can import raw materials from Australia, for example imported wool from Australia. "It is expected that the company will approach the Australian market with its own efforts, focusing on market research for further development. All the staff of the office and the design division of the company must learn. The workers have to cultivate more and at the same time, the company has to invest in more modern machinery to meet the new requirements", Mr. Duong stressed.

CPTTP to open doors for apparel exports to Australia Australia is a potential market for Vietnamese textile and garment exports, which are forecast to hit a ...

Mr. Nguyen Phuc Nam said that in order to gain more effective penetration into the Australian market, Vietnamese textile and garment enterprises must not only have to actively advertise but also understand the common characteristics of this market. Orders start small scale to find out the ability of the supply as well as the acceptability of the market. "There is a part of Vietnam that ignores the Australian market for this reason. However, when initial shipments are successful, larger contracts will be signed and the price of exports to Australia will outperform some other major markets. In addition, once believed, the Australian importers will do business in the long term, rarely change its customers ", said Mr. Nam.