More and more opportunities for Vietnam clothing manufacturers from overseas

There is a concern from Chinese textile and garment companies about the decrease of orders from potential overseas customers recently as the fact that a small number of customers have turned their destination to Vietnam garment factories and listed those clothes manufacturers as potential low-cost area, about 30% cheaper than China. Therefore, It is the time for clothing factories in Viet nam to catch this opportunity for exports taking the advantage of 0% on export duties for Vietnam garment products according to Vietnamese Customs. 

Some of the potential customers for Vietnam clothes manufacturers are the US, European countries and Japan. While companies from the US and European  prefer big orders, Japanese customers usually ask Vietnam garment factories to deal with small quantities of products in a range of design and colours. In the year 2010, it is approximately US$1.2 billion profit went to the pocket of Vietnam clothes manufacturers as a result of exports.
Many Vietnam clothing factories took advantage of the Vietnam-Japan Economic Partnership Agreement 2009 which exempts Vietnam garment from taxes. At the moment, they - Vietnam clothes manufacturers - are looking forward to the success of the negotiation on the inclusion of Vietnam into Trans Pacific Partnership, from which Vietnam garment factories can get more and more import tax advantage into the US. 

The biggest disadvantages for Vietnam clothing manufacturers is the ability to source raw materials such as cotton, yarn, fabric… which are critical criteria in the rules of origin presented in the Partnership. Currently, if a US company wants to import a Vietnamese origin textile product, for example T-shirts, singlets tank tops and similar garments, knitted or crocheted which are made of cotton, they will have to pay 16.5% duty to be able to be imported into the US. These types of garment are of the core export products for Vietnam clothes manufacturers and the import duties are said to be the most concerns made by Vietnam garment exporters.