The China-based Pacific Textiles plans a US$ 180 million dollar venture in Vietnam's textile sector, along with the Crystal Group of Hong Kong, industry sources said.
The Crystal Group will spend an additional US$ 49 million, raising the size of the project, according to sources. Over the past few years, a number of Chinese as well as Hong Kong textile and dyeing projects have got off the ground in Vietnam, with the intention of being well prepared before TPP comes into effect.
Incidentally, the Vietnamese garment industry happens to be the strongest magnet for Chinese investors, though textiles and dyeing also lure Chinese investment, but at a lower level. Currently, Vietnam achieves an annual growth of seven per cent in exports to the US, and growth is likely to reach 12 per cent to 13 per cent, if TPP is favourable to the local textile and garment sector.
Vietnam too is working on a plan to help local manufacturers improve its competitiveness before TPP takes effect. Among TPP members, the US is the largest market for Vietnamese textile and garment producers. By 2025, industry experts expect Vietnamese textile and garment exports to the United States to hit US$30 billion.
The greatest benefit TPP may bring to Vietnamese textile and garment products is a zero tariff. a product with a sustainability cachet but not the added cost may meet the sweet spot of pleasing both a consumer's conscience and wallet," says Bloomberg Intelligence analyst Gregory Elders.
In 2015, Nike and H&M used more sustainable cotton than organic cotton for the first time. Better cotton has grown to around 12% of global cotton production in 2015, versus 0.5% for organic, according to BCI. Says BCI Chief Operating Officer Lena Staafgard, "By 2020 our goal is to reach 5 million farmers worldwide and account for 30% of global cotton production."