On the set of rules of origin, which benefits Vietnam garment manufacturer the most and also is favored by apparel importers is "cut and sew" rule. Under this rule, textiles could be sourced from any country, as long as they are cut and sewn into apparel by a Vietnam garment manufacturer and Vietnam will be listed as the country of origin for those garment products.
This "cut and sew" rule has proved to facilitate the exports of most Vietnam garment manufacturer. As a result of the aprovement on "cut and sew" rule applied for trading between Korea/ASEAN, the export growth rate to the Korean market reached over 70% in 2010 and of course, every Vietnam garment manufacturer gained benefit from this FTA.
This is the reason why in the recent negotiation of TPP, one of the main points that Mr Vice President of Vietnam Textile and Apparel Association, the representative of Vietnam garment manufacturer was trying to persuade is the application of "cut and sew" rule if Vietnam is included in the TPP. This attempt is to improve the competitiveness of Vietnam garment manufacturer in exporting textile and apparel products.
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