Firstly, Vietnam would to some degree benefit from a fully integrated vertical supply chain with Thailand in regards to sourcing. More importantly yet, the country’s nascent textile industry could learn from the higher knowledge level available in the Thai textile and garment industry, especially in the areas of yarn and fabric production, design activities and administration needed to build a fully integrated supply chain within Vietnam. Thailand on the other hand, not being part of TPP, sees its competitiveness waning and would like to get a foot in the door. At this stage, the best option for Thai textile manufacturers is to enhance cooperation with Vietnamese companies, moving production to Vietnam in order to enjoy TPP’s beneficial regulations.
Vietnam’s economy has been growing quickly and continuously especially for exportation. The main export products of Vietnam is agricultural products such as cashew nuts, black pepper, etc. Vietnam is the world’s second largest exporter of coffee and rice. Moreover, Vietnam used to be the world’s fifth largest textile exporter, but in this year, Vietnam becomes the world’s fourth largest textile exporter.
According to the Vietnam Briefing, posted on July 2,2015. Vietnam has turn into the world’s fourth biggest material exporter. In the initial a substantial segment of this present year, the country earned a normal US$12.18 billion from these items - a year on year (YOY) argumentation for 10.26 percent. The business is well on its way to deal with meeting its 2015 charge centre of US$27-27.5 billion.
The three greatest shippers of Vietnamese things were:
United States - with a YOY improvement rate of 11.01 percent
South Korea - with a YOY improvement rate of 8.33 percent
European Union - with a YOY improvement rate of 8.2percent
Moreover, the U.S. aiming to bolster American exporters, is stipulation that nations joining its new Pacific exchange zone reduce imports from China-a suggestion that is meeting resistance from organizations and authorities who say it will upset [worldwide supply chains.
The Senate is expected to pass on Wednesday ( July 1, 2015 ) legislation to expand President Barack Obama’s exchange arranging powers after a wounding fight that has put weight on defenders to demonstrate that the 12-country Trans-Pacific Partnership will make employments in the U.S. To that end, American exchange mediators are requesting that Vietnam, a noteworthy pieces of clothing exporter, decrease its dependence in materials made in China, which isn’t a piece of the exchange agreement, to get special business sector access to the U.S.
The goal is to create new markets in Vietnam for the U.S. textile industry, which employs a quarter of a million Americans and exported $20 billion last year.
However, Vietnam has its own thought. The country is working quickly to add to a homegrown material industry, which would help get around the imprisonments. "Vietnam is attempting to diminish its reliance on imports from China for its bit of apparel industry to better benefit by TPP," said Phan Chi Dung, a senior power with Vietnam's Ministry of Industry and Trade. Regardless, he sees negligible shot of U.S. producers filling the void.
On the other hand, Vietnam and Thailand have agreed to cooperate in the textile. From this cooperation both of Vietnam and Thailand will get some advantages, so we called a win-win situation. Firstly, Vietnam would to some degree advantages from a completely incorporated vertical supply chain with Thailand as to sourcing. More basically yet, the country's early material industry could pick up from the higher data level open in the Thai material and bit of garments industry, especially in the locales of yarn and fabric creation, diagram activities and association anticipated that would manufacture a totally fused stock system inside Vietnam. Thailand on the other hand, not being a bit of TPP, sees its force blurring and may need to get a foot in the gateway. At this stage, the best decision for Thai material creators is to enhance coordinated effort with Vietnamese associations, moving creation to Vietnam remembering the deciding objective to benefit as much as possible from TPP's important regulations.
A Vietnamese-Thai joint effort is thusly a win-win condition for both countries. A year prior, the trade turnover between the two countries went to 10 billion USD, understanding a year-on-year addition of 12.5 percent.