Phát triển xuất khẩu hàng dệt may việt nam khi tham gia hiệp định đối tác xuyên thái bình dương (TPP) tt tiếng anh

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HEADING
1. Reason for choosing thesis topic
The development of textile and garment exports has been a target of
Vietnam's export development strategy. Textiles isn’t only large export turnover,
but also have export markets to many countries in the world. However,
Vietnam's textile and garment industry still has to produce mainly in export
processing (accounting for 70% of turnover). Vietnam has participated in many
Free Trade Agreements (FTAs) including the Trans-Pacific Partnership
Agreement (TPP) was signed in February 2016. On March 9, the CPTPP
(Comprehensive and Progression Agreement for Trans-Pacific Partnership) was
signed to replace the TPP with the 11 member states after the US withdrawal. As
"comprehensive" and "progressive" demonstrates that CPTPP will be more
feasible and comprehensive, CPTPP retains the content of the old TPP but
allows some member countries to postpone the obligations.
Rules of origin in CPTPP is always the biggest challenge for
Vietnamese textile and garment industry. Rules of origin specified products
exported from a member of the CPTPP to other members must have "internal"
origin, which products use third country raw materials, in addition to CPTPP
members don’t enjoy tax incentives. In addition, the shortage of skilled workers,
high professional skills, low labor productivity, lack of investment capital and
technology, not reply the environmental standards, labor is one of the major
challenges for the development of textile and garment exports.
Study content, criteria and factors are affecting the development of textile
and garment export, analysis the current status of Vietnam's textile and garment
export, and propose measures to develop Vietnam's textile and garment export. Nam
is an urgent issue for Vietnam's garment exports when participating in CPTPP.
2. Research objectives and tasks
Objectives of the study: Proposed solutions for the development of
Vietnam's textile and apparel exports when participating in the Comprehensive

and Progression Agreement for Trans-Pacific Partnership (CPTPP) from
clarifying the scientific basis on theoretical and practical implications for the
development of Vietnam's garment exports when participating in CPTPP.
Research tasks: To clarify the rationale for developing textile and
garment export; analyzing and assessing the current status of Vietnam's garment
export, assessing the successes, limitations and find out the reasons for
developing Vietnam's textile and garment exports; Analyzing the context and
prospects for Vietnam's textile and apparel exports, thereby introducing micro
and macro orientations and solutions for the development of Vietnam's garment
exports when participating in CPTPP.
3. Subjects and scope of study
Research subjects: The thesis focuses on theoretical and practical
development of Vietnam's textile and garment export, thus introducing solutions


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to develop Vietnam's garment export when participating in CPTPP.
Research scope
Content: Studing the concept and content of textile and garment export
development, to set up the system of criteria for appraisal of the development of
garment export and analyzing the factors affecting the development of garment
and textile export. The situation of export of textiles and garments and the
situation of factors affecting the development of Vietnam's textile and garment
export; Introduce solutions to develop Vietnam's textile and garment exports
when participating in CPTPP.
On space: Research on textile export of Vietnam to other countries.
About time: Studing the situation in the period 2011-2017, proposing
solutions oriented to 2025, vision to 2030
4. Research Methodology

Methodology of dialectical materialism and historical materialism;
Method of collecting secondary data for analysis and evaluation; Survey
method: Investigators are textile exporters; Comparative, synthesis and
forecasting methods used in the study.
5. New contributions of the thesis
Firstly, the thesis has systematized the theories of developing a textile
and garment export of a country; Analysis of factors affecting the development
of the textile and garment export of a country when joining a regional free trade
agreement.
Secondly, Using theoretical framework to analyze the current status of
Vietnam's textile and apparel export development, including the development of
textile and garment exports to the CPTPP countries and the factors that affect to
the export development of Vietnamese garment and textile when participating in
CPTPP; Assessing the success, limitations and causes of the development of
Vietnam's textile and garment exports.
Thirdly, Based on the assessment of the current status of Vietnam's
textile and garment export, the ability of factors influencing the development of
textile and apparel exports when participating in the CPTP, the thesis proposes
the views and intentions the development of Vietnam's textile and garment
export; At the same time, proposing the macro and micro solutions to develop
Vietnam's garment exports when participating in CPTPP.
6. Structure of thesis
Apart from the prescribed parts, the thesis includes the following main
contents:
Chapter 1: Theoretical bases for development of textile and garment export
Chapter 2: The status of development of Vietnam's Textile and Garment
Exports
Chapter 3: Solutions for development of Vietnam's garment export when
joining the Comprehensive and Progression Agreement for Trans-Pacific
Partnership (CPTPP)

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OVERVIEW OF DOMESTIC AND FOREIGN RESEARCH PROJECTS
CONCERNING PROJECT THESIS
1. Overview of the research situation abroad
There are many overseas studies on the textile and garment industry in
the world, the export of textiles and garments as well as commitments to export
goods including textiles and garments when participating Trans Pacific
Partnership Agreement, including 07 case studies.
2. Research in the country
There are a number of national research projects on textiles and
garments, textile products for export and the conditions were stipulated in the
TPP Agreement on textiles and garments for export, including 18 research
works.
3. Study space and research direction of thesis
In general, the gap that the thesis needs to study is as follows:
- Previous studies have studied some theoretical aspects of textile and
apparel exports, but the thesis will clarify the framework for the development of
the textile and garment exports of a country.
- Previous studies have studied the situation of Vietnam's garment
export in certain angles. The thesis will study the development of Vietnamese
textile and apparel exports with specific criteria and analysis of factors
influencing participation, including new and stronger commitments CPTPP
affects the export of textiles (rules of origin, environment, labor, trade union ...).
- The development trend of textile export with the current evolution of
CPTPP and solutions for development of Vietnam's garment export when
participating in CPTPP is also studied in detail in the thesis.
The thesis will study in depth: systematize theories of developing a

textile export of a country; Analyze and evaluate the current status of Vietnam's
textile and garment export development and the current status of factors
affecting the development of textile and apparel exports when participating in
CPTP. Find out the success, limitations and causes of the development of
Vietnam's textile and garment exports; Proposed scientifically based macro and
micro solutions to develop Vietnam's garment exports when participating in
CPTPP.
CHAPTER 1: THEORETICAL FOUNDATION ON DEVELOPMENT OF
TEXTILE GARMENT EXPORTS
1.1. The concept and role of textile export development
1.1.1. The concept of export development
1.1.1.1. Export concept
With a lot of concepts on export of goods, the thesis selected in the
process of studying the definition of goods export under the 2005 Commercial
Law of Vietnam as follows:
Export of goods means that the goods are taken out of the territory of


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Vietnam or put into a special area located in the territory of Vietnam is
considered a separate customs area in accordance with the law [8].
1.1.1.2. The concept of export development
The author proposes the concept of export development as follows:
Export development is the process of change in both quantity and
quality in export. This is an increase in the size of exports, the development of
export markets, export products associated with quality improvement and
structural shift. Promoting the efficiency of production and export business.
1.1.2. Garment export characteristics
- The export of textiles and garments depends on the specific

characteristics of each country.
- The export of textiles and garments also depends on the fashion trend of
the countries.
- Export of textiles and garments related to seasonality of products.
- Creating a brand for textiles and clothing exports is also a determining
factor for a country's textile exports.
- The trend of consumption of textiles and garments for export in the
countries also depends on the per capita income and consumption structure of
the garment of the people in that country.
- The textile and garment export market is wide because almost all
countries and regions in the world import textiles and garments to meet the
needs of the majority of people.
- Exports of textiles and garments also depend on the tariffs and nontariffs of importing countries.
1.1.3. Classification of textiles
Classification according to statistics: Currently, goods are traded
worldwide with a system of codes used to regulate the classification system of
goods. With the HS code can easily avoid confusion on the classification.
Classification by product category for garments: for example, coats,
suits and uniforms, jackets, long skirts and loose skirts, shirts, trousers, T-shirt,
baby outfit, sportswear ...
Sorting by weave for textiles: Knitting: Knitted or crocheted knitted or
crocheted fabrics are formed by bonding a set of loops; Woven: Woven fabrics
that use woven fibers consisting of warp and weft are bundled together at right
angles to form a piece of cloth.
1.1.4. The concept of development of textile and garment export
The development of textile and garment exports is a process of changing
both in terms of quantity and quality in garment export including the increase in
export scale, export product development, export market development, Develop
export business methods to improve production efficiency and export business.
1.1.5. The role of textile export development

The development of textile exports has become increasingly important
in the economy of each country.


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Firstly, the development of textiles and clothing exports will bring in
foreign currency for the country, reduce the trade deficit, accumulate production
and efficiently exploit the country's resources.
Secondly, the development of textile and garment exports will help
expand the export scale, improve export efficiency and maintain sustainable
growth in a certain period.
Thirdly, textile and garment industry is a labor-intensive sector, so the
development of textile and apparel exports will create more direct and indirect
employment, increase incomes and improve living conditions for workers. social
stability.
Fourthly, the development of textile and garment exports will increase
the efficiency the use of capital in the textile and garment industry, stimulating
and renovating the technology.
Fifthly, the development of textile and apparel exports has an important
role in tapping the available resources of the country as well as enterprises.
Sixth, the development of textile and garment exports contributes to
enhance the competitiveness of the industry, enterprises and products.
Seventh, develop textile and garment export to create conditions for
enterprises to expand production, develop the market, improve product quality,
capture information and establish business cooperation.
Eighth, the development of textile and apparel exports has also a role in
boosting international economic relations among nations, contributing to the
current intensive integration process.
1.2. The content of textile export development

1.2.1. Develop export scale
The export scale is expressed in terms of total volume and value of
exports, the export scale expands while total volume or value of exports
increase.
1.2.2. Development of export markets
Export market development is reflected in market restructuring. Market
restructuring include:
Develop new markets
Change market share in a given market
Scaling up in export markets
The export market structure is determined, current and future export
values can be calculated by analyzing the markets and the factors that affect the
export of textiles and clothing to that market. Shifting export markets should be
directed towards potential export markets, which are likely to consume large
quantities of export commodities and bring about optimal efficiency in the
export of textiles.
1.2.3. Development of export products
Development of export products is reflected in the restructuring of
exports including:


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- Change, improve product quality
- New product development
- Creating brand name for export
- Changes in the structure of quantity and types of existing items
Thus, developing the export of textiles and garments, it is necessary to
shift the product structure in a rational manner. It should be directed at the
textile products that the exporting country has the advantage, bring high added

value in the export, develop the products are designed and produced directly,
branding for the goods textiles and garments for export.
1.3. The system of criteria for evaluating the development of the
export of textiles and garments
1.3.1. Developing the export scale of textiles and garments
- Total turnover of extile and garment export
Export turnover is the measure of the total value of exported goods, which
is recorded quarterly or yearly.
Determination method: E = P x Q
E: export turnover; P: selling price on the export market; Q: The number
of export goods
- The total export turnover of textiles and garments compared to the
total export turnover of the country
E
D (%)  dm x100%
Ehh
Determining methods:
D (%): share of textile and garment export turnover in relation to export
turnover; Edm: total textile and garment export turnover; Ehh: total export
turnover of goods
- The growth rate of textile and garment export turnover
E  E0
g (%)  t
x 100%
E
0
Determining methods:
g(%): growth rate of export; Et: yearly export turnover; E0: Year of export
base
- The growth rate of textile and garment export compared with the growth

rate of the country
f (%)
S
g (%)
Determining methods:
S: Index compares the growth rate of textile and garment export with the
growth rate of total export turnover of the country; f: Growth rate of textile and
garment export; g: The growth rate of export turnover of the whole country
1.3.2. Developing the textile and garment export market
- The market structure is reflected in the structure of the export turnover
of textiles and garments in a market compared with the total export turnover of
textiles and garments.


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Et
100%
ME
Determining methods:
T: share of textile and garment export to a market compared to total
export of textile and garment; Et: turnover of textile and garment export to a
market; ME: Total textile and garment output.
- The growth rate of the market is reflected in the growth rate of the
textile and garment export turnover in one market compared to the growth rate
of the total textile and garment export turnover.
f (%)
I n
f (%)
Determining methods:

T (%) 

I: The index compares the growth rate of textile and garment to one
market with the growth rate of total output of textile and garment; fn: Growth
rate of textile and garment in the market; f: Growth rate of total output of textile
and garment.
- The market structure shift coefficient reflects the change in market share
expressed by the share of textile and garment export turnover in a particular
market over a given year or period.
T (i )
t (i )  n
T0 (i )
Determination of market structure:
t (i): The shift coefficient of the export market structure of textile and
garment; Tn (i): proportion of textile and garment export to i in year n over total
export value of textile and garment; T0 (i): The proportion of textile and
garment export to i in the base year compared to the total export value of textile
and garment
1.3.3. Develop textile and garment exports
Develop textile and garment exports through the development of
commodity structure, the growth rate of the commodity and the shift of textile
and garment export structure.
- The structure of commodity items is shown by the proportion of export
turnover of a textile and garment item to the total export turnover of textile and
garment items.
E
H (%)  h x100%
ME
Determining methods:
H: The ratio of export value of textile and garment to total textile and

garment export turnover; Eh: export of textiles; ME: Total export turnover of
textiles and garments
- The growth rate of the commodity is shown by the growth rate of the
textile and garment export turnover compared to the growth rate of the total
textile and garment export turnover.
k (%)
N (%)  h
f (%)
Determining methods:


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N: The index compares the growth rate of textile export with the growth
rate of total export turnover of textile and garment; kh: the growth rate of export
of textile and garment; f: Growth rate of total output of textile and garment
- Restructuring textile and garment exports reflects the change in the
proportion of export turnover of a particular textile or garment category over a
given year or period.
M ( j)
h ( j)  n
M 0 ( j)
Determining methods:
h (j): coefficient of shift of textile and garment export structure; M n (j):
share of textile and garment export in commodity j in year n over total export
value of textile and garment; M 0 (j): The proportion of textile and garment
exported in year j compared to the total export value of textile and garment
1.3.4. Competitive Advantage (RCA)
The RCA evaluates the potential of a country's textile exports.
Determination method (according to ITC data source):

RCAij = (xij / Xit) / (xwj / Xwt)
xij and xwj are the export values of j commodity of i country and j
commodity of the world; Xit and Xwt are the total export of the country and total
exports of the world.
+ RCA <1: the product has no competitive advantage
+ 1 + RCA> 2.5: the product has a high competitive advantage
1.3.5. Export Expertise Index (ES)
The ES index is similar to RCA but refers to a specific market. The ES
index helps identify potential partners.
Determination Method: ES = (xij / Xit) / (mkj / Mkt)
xij and xit is the export value of item j of country i and the total export
value of country i; mkj and mkt are the import values of commodity j in market
k and total import in market k
1.3.6. Intra Trade Industry (IIT)
Method of determination: IITjk = 1 - (Xijk - Mijk) / (Xijk + Mijk)
Xijk is the export value of the textile sector (i) from country j to country k
Mijk is the import value of the textile sector (i) in country j from country k
The IIT varies from zero (no intra-textile trade to 1) (all textiles are
textile). IIT> 0.5 indicates trade between the two countries mainly due to intratextile trade. IIT <5 mainly due to the impact of inter-sectoral trade.
1.4. Some factors affect the development of textile and garment
exports
1.4.1. Elements of the international environment
1.4.1.1. Export competitiveness in the world market
1.4.1.2. International economic factors
1.4.1.3. The development of science and technology across the globe


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1.4.1.4. The policy of the importing country and international rules and
regulations
1.4.1.5. Joining the regional free trade agreement
1.4.1.6. Accession to the Comprehensive Partnership for Transnational
Partnership (CPTPP)
1.4.2. Macro factor
1.4.2.1. Integration policy
1.4.2.2. Policy on infrastructure development in the textile and garment
industry.
1.4.2.3. Policy on technical requirements, environment and labor
standards
1.4.2.4. Market policy and export promotion
1.4.1.4. Goods policy and traders
1.4.3. Elements of the enterprise
1.4.3.1. Activing supply of raw materials
1.4.3.2. Transition from outsourcing to direct production
1.4.3.3. Raising the competitiveness of textile and garment products for export
1.4.3.4. Developing the textile and garment export market
1.4.3.5. Building and developing brand
1.4.3.6. Human resource development
CHAPTER 2: THE IMPORTANCE OF THE DEVELOPMENT OF
TEXTILE AND GARMENTS EXPORTING OF VIETNAM
2.1. Development of Vietnam's textile and garment export in the
2011-2017 period
2.1.1. Development of Vietnam's garment export scale
2.1.1.1. Total export turnover of textiles and garments
In recent years, Vietnam's textile and garment export turnover has been
steadily increasing and relatively stable over the years. The average growth rate
of the period 2010-2017 is 13.1% / year (export turnover of the country is 16.5%
/ year). Participating in the Comprehensive and Progression Agreement for

Trans-Pacific Partnership (CPTPP), the Vietnamese textile and garment industry
is expanding its export market, increasing the export turnover of textiles and
garments into the CPTPP markets. own and the world market in general.
Export turnover of Vietnam textile and garment in the period 2010-2017
Unit of calculation: billion USD; %
Content
Export turnover
nationwide
Export turnover of
textile and garment
Export turnover of
textile and

201
0

201
1

2012 2013 2014 2015 2016 2017

72,2 96,9 114,
5
12,5 15,0 16,3

132,
0
20,0

150,

2
22,6

162,
0
25,3

176,
6
26,8

211,
1
29,5

17,
3

15,0

15,0

15,6

15,1

14,0

15,
4

14,2

aver
age
grow
th

16,5
13,1


10
garment / Export of
whole country
Source: General Department of Statistics, General Department of Customs 2017

2.1.1.2. Growth rate of textile and garment export turnover
The index of growth rate of textile and garment export compared with
the country's export growth rate for many years is more than 1, 2017 index is
0.5. The decrease was due to subjective and subjective effects, including factors
such as investment, policy adjustment, input materials, and changes in TPP,
which have now been replaced by CPTPP.
2.1.2. Developing the textile and garment export market
2.1.2.1. Market structure
Vietnam continues to develop its exports to strategic markets such as the
United States, the EU, Japan, South Korea and China and expand potential
markets such as ASEAN, Canada and Russia. .. Participation in CPTPP will
expand market share in the block markets as well as promote other export
markets.

2.1.2.2. Growth rate of markets
Some markets have a large export turnover of textiles and garments such
as Taiwan, Russia and Canada, but these markets have low growth rates, which
are potential markets that Vietnam needs to expand export in the coming years.
2.1.2.3. Move the market structure
The market movements of large export markets such as the United
States, the EU and Japan have a coefficient close to 1 and greater than 1
indicating an increase in export turnover in these markets. However, the growth
rate is still low. Next to the two markets of Korea and China, some markets
have the potential to export textiles such as ASEAN, Canada, Russia ...
2.1.3. Market structure of CPTPP countries
After the United States withdrew from the TPP and signed the CPTPP of
11 countries including Vietnam. Vietnam has exported textiles and garments to
eight countries, the remaining two countries have not exported yet, namely
Brunei and Peru. Exports to the CPTPP market account for about 14% to 16% of
total textiles export of Vietnam.
Export turnover of Vietnam textile and garment to CPTPP
The period 2011 - 2017
Unit: Million USD; %

Countr
y

2011

Chile
New

21,72
7,93

2012

27,61
8,00

2013

31,07
12,82

2014

100,60
17,24

2015

93,28
15,51

2016

73,51
16,35

2017

89,01
19,43

Total
export
s
the
period
20112017

Aver
age
grow
th
the
perio
d
20112017

437,80
97,28

26,50
16,11


11

Countr
y

Zealand

Singapore
Australia
Malaysia
Mexico
Canada
Japan
Total
turnover of
textile and
garment
export to
TPP
Total
turnover of
Vietnam
textile and
garmen
The
proportion
of textile
and
garment
export to
TPP / total
export of
garment
and textile

Aver
age

grow
th
the
perio
d
20112017

2011

2012

2013

2014

2015

2016

2017

Total
export
s
the
period
20112017

29,50
52,54

88,69
82,37
270,74
1.690,3
4

33,64
68,57
76,87
82,41
314,81
1.974,6
1

41,29
90,19
89,91
86,63
390,07
2.379,6
5

50,22
132,10
103,33
106,47
491,18
2.620,4
6

67,69
142,79
123,22
99,26
539,58
2.785,8
8

73,98
170,59
138,12
94,68
516,67
2.900,8
0

87,98
173,23
91,65
88,46
556,30
3.110,4
4

384,30
830,01
711,79
640,28
3.079,35
17.462,1

8

19,97
21,99
0,55
1,19
12,75

2.243,83

2.586,52

3.121,63

3.621,60

3.867,21

3.984.70

4.216,50

23.642,99

11,08

15.034,4
0

16.311,3

0

20.041,3
5

22.618,8
1

25.341,6
5

26.817,8
7

29.505,3
9

155.670,7
7

14,9

15,8

15,6

16,0

15,3

14,8

14,3

15,2

10,69

Source: General Department of Customs and author's calculations

2.1.4. Growth rate of textile and garment export turnover to CPTPP
market
The growth of textile and garment export turnover in Vietnam is uneven,
in 2017 the textile and garment export turnover increase by 10%. CPTPP has
opened new prospects for the development of Vietnam's textile and garment
industry in the coming period.


12
25
20
15
10
5
0

growth of textile and garment export turnover to TPP
growth
of textile and
2

3 garment export4 turnover in Vietnam
5

1

6

Growth of Vietnam's textile and garment export turnover to CPTPP
2.1.5. Comparing the structure of Vietnam's textile and garment export
market to current and former CPTPP
The structure of Vietnam's textile and apparel exports to the former and
current CPTPP has varied greatly since the United States withdrew and the
CPTPP was replaced by the TPP. There was a significant shift in the export
market structure when the US pulled out of the CPTPP, when the United States
exported textiles and clothing to CPTPP, accounting for 56% of Vietnam's total
textile and garment export turnover to 15%.
2.1.6. Textile and clothing development
2.1.6.1. Structure of Vietnam’s textile and garment exports
Vietnam's commodities and textiles for export in accordance with HS
codes are diversified and diversified to meet many segments of the world
market, including apparel, apparel, apparel and textiles. Finished goods (HS 61,
HS 62, HS 63) account for most of the textile and garment exports.
12000
10000
8000
6000
4000
2000
0

Code HS

62

61

63

Others


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Structure of Vietnam’s textile and garment exports under the HS code
2.1.6.2. Growth rate and textile structure shift
In recent years, garment has average growth rate compared to the
growth rate of textile and garment export nationwide. Textiles have a very low
growth rate. The process of restructuring exports has been slow. With the
abundant sources of textiles and textiles, the textile and garment exports will
gradually reduce the form of processing, increase the products produced and
designed, creating a shift in product structure towards positive in export.
2.1.4. Comparative Advantage (RCA) textiles for export
1 Vietnam's textile exports have competitive advantages but are still low.
RCAhm> 2.5 (RCAhm with index from 5.29 to 6.17 in 2011 to 2015):
Vietnam's garment exports have competitive advantages.
From the analysis of Vietnam's textile and garment sector, it is found that
Vietnam's textile and garment exports have competitive advantages in the world
market, especially garment products.
2.1.5. Export specialization index (ES) textiles

The ES index shows that the ability to export textiles and garments from
Vietnam to major markets and markets of CPTPP countries can be highly
effective. ES between Vietnam and other countries is greater than 1 and has a
relatively high index. The ES index helps Vietnam maintain its export value to
major export markets such as the United States, China, South Korea, Germany
and other markets in the CPTPP such as Japan, Canada, Malaysia, Singapore
and Mexico.
2.1.6. The intra-industry trade index (IIT) for textiles and garments for
export
Although the intra-industry trade index (IIT) between Vietnam and
China, South Korea and Taiwan is quite high, Vietnam's textile and garment
products also have fierce competition with textile products. These countries are
about price or quality of products. This is also a problem for Vietnamese textiles
and garments in maintaining and expanding export markets. With CPTPP
countries such as Japan, Canada, Australia ... have an IIT of less than 1, so these
are opportunities to expand exports to these markets when the CPTPP is
implemented.
2.2. Status of factors affecting the development of garment export
2.2.1. Elements of the international environment
- The competitiveness of Vietnam's textile and garment export in the
world market


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- Policies of importing countries and international regulations on export
textile and garment
- International economic factors
- The development of science and technology
- Accession to the Comprehensive Partnership for Transnational

Partnership (CPTPP)
2.2.2. Macro factor
2.2.2.1. Integration policy
Implementation of integration policy to help Vietnam promoting exports
in general and export of textiles in particular. However, Vietnam doesn’t have a
complete and synchronous legal system, which makes it difficult to implement
its commitments. It has not formulated a long-term plan and a reasonable
roadmap for implementing its commitments. The opportunities offered by FTAs
for textile exports include CPTPP.
2.2.2.2. Infrastructure development policy
The Government of Vietnam has introduced a number of infrastructure
development policies as well as supporting industry development in the textile
and garment sector in order to promote the production and export of textiles.
The supporting industry development policies including supporting textile
industry haven’t been implemented yet.
2.2.2.3. Policies to ensure technical requirements on environment and
labor standards
The government has regulated and regulated environmental and labor
regulations through a number of policies. Policies show that the development of
the textile and garment industry must be linked to environmental protection.
Developing concentrated textile dyeing and industrial clusters to facilitate
environmental treatment. The organization of implementation of labor safety
techniques, safety training and labor sanitation activities in the textile and
garment industry have not clearly defined the responsibilities of the relevant
departments.
2.2.2.4. Market policy and export promotion
Policies have been promulgated and implemented to expand and
diversify export markets, promote policies to facilitate market entry and access,
and develop export markets, thereby boosting exports. general merchandise and
textiles in particular

2.2.2.5. Goods policy and traders
Policies to encourage commodities and traders to import and export,
including export of textiles and garments, have provided an orientation for
export development under the model of sustainable and rational growth between
breadth and depth. To expand the export value, while attaching importance to
raising the export value. Traders, including textile traders of all economic
sectors, are entitled to directly engage in import and export activities.
2.2.3. Capability of Vietnamese garment exporters


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2.2.3.1. Supply of materials of enterprises
Raw material of cotton, fiber and yarn
At present, Vietnamese garment enterprises use about 600 thousand tons
of natural cotton, 400 thousand tons of fiber each year. Due to the inadequate
production to meet the production demand, 90% of the demand for cotton and
fibers of all kinds must be imported annually.
Textile, dyeing and finishing
The most unreasonable point in the process of producing textiles and
garments for export in the enterprises as the stitching, weaving, dying by the
type and quality of fabrics of Vietnamese enterprises have not met the
requirements of the goods garment export.
2.2.3.2. Transition from outsourcing to direct production
Vietnamese garment exporters are still mainly engaged in simple
processing. The export rate of garments made by OEM/FOB method (raw
materials purchase, semi-finished products), ODM (method including
production and design), OBM (branded production method) own) is low.
2.2.3.3. Competitiveness of textile and garment exports
Competitiveness of textiles: Viet Nam is highly competitive in the world

market, its export growth rate of textile products ranks 26th, garment ranks 10th
in the world market. Large demand and export market share.
Competition on export prices compared to some countries: The price of
textiles and clothing always changes according to the supply and demand of
textiles and garments in the world market.
2.2.3.4. Market development and branding of garment export
Export activities of Vietnamese garment enterprises are dependent on
regional producers. Enterprises are not aware of the upstream stage to be active
in production activities with their own designs and brands, textile products are
still difficult to penetrate the potential export markets. developed countries.
2.2.3.5. Human Resources
The textile and apparel industry currently has about 2.5 million workers,
with significant increase over the years. However, the quality of labor in
garment enterprises is not high, and human resource training capacity is limited.
Unskilled laborers are highly trained, do not have much experience,
communication skills, seek partners, especially for management positions.
2.3. Assessing the current status of Vietnam's textile and garment
export
2.3.1. Some successes in the development of Vietnam's garment export
Firstly, the growth rate of exports has increased over the years.
Secondly, diversified export structure.
Third, commodity restructuring and positive market structure.
Fourthly, raise the price competitiveness.
Fifth, develop textile exports in both breadth and depth.
Sixthly, the labor force in the textile and garment industry will also


16

affect positively.

2.3.2. Restrictions of the Vietnamese textile and apparel industry
Firstly, the shortage of raw materials and weaving, dying is weak
Secondly, infrastructure, technical technology and supporting industries
in the textile and garment industry have not yet developed
Third, the export of textiles is mainly in the form of outsourcing
Fourthly, unskilled and low skilled workers account for a high
proportion
Fifth, foreign investment in textile and apparel industry is still low
Sixth, policies and regulations related to importing countries
Seventh, the differences in culture and practices between Vietnam and
other countries
2.3.3. The cause of the limitations
Causes from the State: The system of policies through decisions, decrees,
circulars is not comprehensive, consistent, tight and effective implementation isn’t
high; The policies issued mainly focus on export development in the width without
attention to increasing value added in export ...
Causes of enterprises:
Currently, textile and garment enterprises have limited production scale,
mainly small production, low productivity; Enterprises have not been fully
aware of the state's policies on garment production and export. Many textile and
garment enterprises have not met the supply of raw materials and the main mode
of export is processing ..
CHAPTER 3: DEVELOPMENT SOLUTIONS FOR TEXTILE AND
GARMENT EXPORT VIET NAM PARTICIPATING IN COMPREHENSIVE
AND PROGRESSION AGREEMENT FOR TRANS-PACIFIC
PARTNERSHIP (CPTPP)

3.1. International and domestic contexts influence the development of
Vietnam's textile and garment exports
3.1.1. International context

3.1.1.1. Development trend of textile and garment industry in the world
In the past, the globalization of the textile and garment industry has been
manifested through the formation of a global textile value chain. With many
developments in the world, 2017 appears to be the issue of world interest in
which emerged is the nationalism associated with protectionism trade. This trend
began when US President Donald Trump took office with a number of edicts
that did n’t support free trade agreements including withdrawals from the
CPTPP.
3.1.1.2. Trends change the demand for textiles world
The size and age structure of the population is one of the key determinants
of spending on apparel. For the market segment according to the type of activity,


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depending on the customs and habits of each country, the demand for different
types of clothing will be different. In addition, in terms of fashion and lifestyle,
income of each country consumers.
3.1.2. Domestic context
At present, Vietnam's position on the international arena continues to be
raised; Creating a solid premise for higher development in later stages. In the
socio-economic development strategy 2011-2020, striving the general objective
that by 2020 our country will basically become an industrialized country in the
direction of modernization; Decision No. 3218 / QD-BCT dated April 11, 2014
of the Ministry of Industry and Trade approving the master plan on development
of Vietnam's textile and garment industry up to 2020, with a vision to 2030.
Vietnam continues to integrate deeply more broadly into the world economy.
CPTPP is a new large-scale free trade agreement for the textile and garment
industry, creating an environment for development of Vietnam's textiles and
garments export.

3.2. Some opportunities and challenges for exporting textiles and
garments when participating in CPTPP
3.2.1. Overview of the CPTPP Agreement
3.2.1.1. The evolution of CPTPP
The Comprehensive and Progression Agreement for Trans-Pacific
Partnership (CPTPP) has originated from the Trans-Pacific Strategic Economic
Co-operation Agreement, a free trade agreement signed on June 3, 2005,
Effective from 28 May 2006 between the four countries of Singapore, Chile,
New Zealand, Brunei (referred to as P4).
In August 2008, the United States joined the P4 negotiations. In
November 2010, Vietnam joined the negotiations, from which time the P4
expansion negotiations were renamed TPP negotiations.
US President Donald Trump after taking office in January 2017 decided
on US withdrawal from the TPP. The TPP has fallen into disarray after the
United States announced its withdrawal from this important trade agreement.
On 11/11/2017, 11 member countries agreed to rename the TPP
Agreement into the CPTPP (Comprehensive Partnership Agreement and TransPacific Partnership Agreement). On March 9, 1818, CPTPP was officially
signed. The CPTPP is expected to be more feasible and comprehensible, the
CPTPP remains the same as the TPP but allows some member countries to
postpone their obligations. The CPTPP is a comprehensive, balanced member
interests.
3.2.1.2. Some contents of the CPTPP are related to the export of textiles
Tariff regulations: According to the CPTPP, tariff reductions of 0% will
follow a different schedule with commodity groups consisting of three groups:
tax elimination right after CPTPP; The tax elimination group follows a five-year
roadmap (gradually decreasing within five years of the entry into force of the
CPTPP) and the sensitive group (tax reduction at the time of entry into force of


18

the CPTPP; 10 to 15 years). Classification of textiles and apparels under the HS
codes HS 50 to 63 shall be exempt from tariffs on items having raw materials,
cut, sewn or assembled within the CPTPP and meeting the conditions for
enjoying preferential tariffs. in accordance with the CPTPP.
Rules of origin: In the terms of the CPTPP, 90 to 95 percent of products
are subject to tariff reductions of 0 percent, internal rules of origin. CPTPP has
very strict regulations on the content of regional value, that is, the product must
reach the localization rate of 55% or more. The CPTPP has provided for a list of
temporary supplies, temporary listings, textile products using materials in this
list to be applied over a certain period of time.
Safeguard Measures: With this provision, the CPTPP allows the
importing country to apply safeguard measures, including increasing tariff rates
on the commodities of the exporting Party. This will reduce the huge benefits of
tariff preferences.
Labor regulations: The provisions on labor in the CPP mainly relate to
basic labor rights commitments in order to set labor standards. Countries affirm
their obligations as members of the ILO (International Labor Organization). In
order to meet the conditions set out in the Agreement, there must be measures to
ensure labor safety, working hours and wages in the garment industry.
Environmental regulations: Environmental conditions have identified
multilateral environmental agreements, protection of the ozone layer, protection
of the marine environment from marine pollution, procedural issues and social
responsibility. Businesses, Voluntary Mechanisms to Enhance Environmental
Expression, Trade and Biodiversity.
3.2.2. Characteristics and forecasts of textile and apparel exports to the
CPTPP market
3.2.2.1. Characteristics of export of textiles and garments to CPTPP
countries
In the period 2011-2017, Vietnam's textile and apparel exports to the

CPTPP countries averaged 11.08% per annum, accounting for 14% to 16% of
total textile and garment export turnover. When the CPTPP is implemented, the
region will become Vietnam's second largest textile export market, second only
to the US market. In CPTPP, Vietnam hasn’t exported textiles and garments to
Brunei and Peru. Two major export markets are Japan and Canada. Some
potential markets have a high growth rate, although garment export is still low,
such as Chile, Singapore and Australia.
The market of CPTPP plays a very important role in Vietnam's textile
and garment exports. When CPTPP is implemented, it will be highly effective in
developing Vietnam's garment export in the coming years.
3.2.2.2. Forecast of Vietnam textile and garment export to CPTPP market
It is forecasted that Vietnam's textile and garment export turnover will
reach US $ 9,773.3 million by 2025. However, when implemented by CPTPP, it
is estimated that the average growth rate will be 20% In the year 2030, the value


19

of textile and garment exports will increase by 55.4% to reach US $ 17.641,3
million by 2025. In 2030, US $ 29,833.8 million will be achieved. This proves
that CPTPP has opened many opportunities in the development of Vietnam's
textile and garment export in the coming time.
3.2.3. Opportunities for export of textiles
Preferential tariff
Increase the localization rate
Improving science and technology
Promote social development
Raising competitiveness, attracting investment
Supply chain development for the textile industry
Improve business environment

3.2.4. Challenges for export of textiles
Requirements on rules of origin of textiles
Meet high technology requirements
Difficulties for exporting countries and importing countries when using
safeguard measures
Create competition among foreign invested enterprises (FDI) with
enterprises in CPTPP countries
Meet the conditions of labor
Environmental conditions
3.3. Perspectives and orientations for development of Vietnam's
textile and garment export
3.3.1. The viewpoint of developing Vietnam's textile and garment export
Firstly, the development of textile and garment exports will be
sustainable and effective, shifting from the export processing to the production
of raw materials and semi-finished products, ensuring the quality and
diversification of commodities. export.
Secondly, focus on developing the textile and garment supporting
industries, producing raw materials and auxiliary materials, and enhancing
added value for export textile and garment products.
Thirdly, the development of textile exports must be linked to
environmental protection and social security
Fourthly, the development of Vietnam's textile and garment exports
must be based on Vietnam's international integration commitments and on the
basis of free trade agreements
Fifthly, creating a great source of garment exports by developing human
resources in the export sector in both quantity and quality. In addition, attracting
domestic and foreign investment in extile export activities.
3.3.2. Orientation for development of Vietnam's garment export when
participating in CPTPP

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Firstly, development of upstream materials such as cotton, fibers,
artificial fibers and auxiliary materials.
Secondly, concentrate on producing high quality fabrics, technical
textiles and quality products to meet the increasing demand for export.
Third, creating a brand for textile exports
Fourth, improving the supply chain quality in Vietnam's textile and
apparel industry
Fifth, ensure proper and adequate environmental and labor requirements
3.4. Macro solutions
3.4.1. Development and production of input materials
In order to ensure sufficient source of raw materials and to meet the
requirements of rules of origin in CPTPP, Vietnam should focus on producing
raw materials for export such as cotton and fiber. It is necessary to plan the
development of cotton fiber growing areas in areas and localities with suitable
conditions such as Son La, Dien Bien, Quang Tri, Quang Binh, Ninh Thuan,
Binh Thuan and the Central Highlands. To develop the mulberry industry by
strengthening the scientific and technological work to bring to the growers and
growers of high-productivity varieties.
Develop silkworm mulberry associations to link mulberry and silkworm
production and implement measures to support farmers such as preferential
loans, introduction of products, introducing new varieties into production. ,
raise. Planning and investing in the development of silk-farming areas in Son
La, Dien Bien, Central Highlands and Northern Vietnam, and the Central
Highlands where suitable soil and climate conditions exist.
3.4.2. Invest in infrastructure, textile technology
It is necessary to invest in raising the technological level and apply
scientific and technological advances into the textile and garment industry as

follows:
- Businesses that are geographically close to each other will create links
to leverage on technology capabilities and equipment.
- Enterprises with high specialization in production.
- The textile and garment group should have programs to assist the
investment plans to raise the technological capability of export garment
enterprises.
- Technology and production lines need to be synchronized and modern,
absorbing the latest and advanced technologies in the world.
- Select and invest in the construction and development of artificial fiber
factories.
- Investing in infrastructure to form industrial zones.
- Waste water treatment is an important issue for dyeing and printing
facilities.
- To concentrate on investing in the latest state-of-the-art technologies
and equipment, the latest generation technology for textile production and


21

export.
3.4.3. Textile and clothing development
- Vietnam needs to grasp the necessary information, produce textiles and
garments to meet the standards and regulations on rules of origin as well as
requirements on labor and environment. Need to invest in new products to meet
consumer demand and improve the quality of textile and garment exports when
participating in CPTPP.
- The textile and garment industry needs to invest in building its own
design centers in order to build and affirm the brand name of Vietnam's textile
and garment exports and raise the value of exports.

3.4.4. Developing the textile and garment export market
- It is necessary to capture export market segments in order to come up
with reasonable export strategies. There is a need for structural shifts to potential
markets and for export growth in these markets.
- Development of Vietnam's textile and garment distribution channels
should reduce the number of intermediate and direct exports to the importing
country without the need of a third country. Decide the favorable time for
market penetration when selecting distribution channels for export textiles.
3.4.5. Attract investment
Developing the textile and garment export industry, it is necessary to
attract domestic and foreign investment capital. To encourage all economic
sectors at home and abroad to invest in textile and garment development. Attract
domestic and foreign investment through investment projects in the field of
textile, dyeing, production of cotton fiber and man-made fiber, production of
raw materials. As Vietnam participates in CPTPP, it will increasingly attract
foreign investment into the country to produce high quality products and
originating in the country.
3.4.6. Training human resources of high quality
In order to train human resources of high quality to meet the
requirements of the textile and garment industry, there should be close links
between garment enterprises and textile and apparel schools in training and
development. Human Resources; To set up and develop a specialized textile and
garment training system; To build a harmonious relationship between workers
and staff; Moving production methods from the form of processing to the form
of production FOB, ODM ... will help increase the added value in textile export.
3.4.7. Enhance the role of the textile association
The textile and garment association always plays a very important role,
is the bridge between the domestic manufacturing enterprises and foreign
markets. Thus, the association will play a role in promoting the export and
import of textiles and garments of Vietnamese enterprises. It is necessary to

continue to enhance the role of the textile and garment association in Vietnam's
textile and garment export activities.
3.5. Solutions to businesses


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3.5.1. Being active on the supply of raw materials
Enterprises invest capital, technical equipment and machinery for
localities; Encourage people to focus on production. Create cohesion in the
procurement of raw materials between the enterprise and the place of production
of raw materials. Enterprises should have specialization in production such as
building factories, factories specializing in manufacturing raw materials to
create fibers, fibers for textile and garment. The development of upstream will
help Vietnamese enterprises active in providing raw materials for production and
export of textiles and clothing when participating in CPTPP.
3.5.2. Fast converting from method production to directly production
In order to meet the requirements of CPTPP, Vietnamese enterprises
need to shift from CMT to higher modes such as raw material purchase, semifinished products (OEM / FOB), production and design (ODM) and the more
advanced method is the production of own brand (OBM).
3.5.3. Apply advanced science and technology
Enterprises need to renovate the technological process, invest in the
purchase of equipment and textiles in sync with the high technical standards,
gradually eliminating technology equipment. With the constant innovation of
textiles and garments, the short product cycle in the market requires rapid
technological innovation to meet the demand for textiles to meet the changes in
the world market, meeting the needs of CPTPP countries.
3.5.4. Appropriate pricing for textiles and garments for export to
improve competitiveness
Enterprises need to set a suitable price policy and have to closely

monitor and study the fluctuation of the market. At present, Vietnam's textile and
garment export prices are competitive compared to many countries in the world,
including CPTPP, which is also one of the advantages of Vietnam's export of
textiles and garments. to the countries. Vietnamese garment enterprises should
have a suitable pricing strategy for each type of product, each market share,
competitive price is the strong point in the current time for Vietnamese
enterprises even in the market of CPTPP.
3.5.5. Market development and branding of textiles
Businesses need to expand and develop export markets, maintain and
develop markets with large export turnover in Japan, Canada, and continue to
expand into potential markets such as Australia, New Zealand Enterprises need
to invest in the construction of their own design centers in order to build and
affirm their trademarks and increase the value of export goods, which help the
textile and garment enterprises to easily integrate and have been lived durable in
the world market in general and CPTPP market in particular.
3.5.6. Human resource development in enterprises
Human resources are one of the important factors that determine the
success of the business. Therefore, enterprises need to have the most effective
human resource solutions such as enhancing the role of each employee in the


23

company from management level to the worker. Besides training, encouraging
and using staff Employees also need to focus on recruiting staff, selecting
qualified people with good skills to build a quality workforce in the enterprise.


24

CONCLUDE
Textiles are the main export items of many countries in the world.
Garment export development is always a target in the export strategy of each
country. In order to develop the export of textiles and garments, it is necessary to
have the development of export scale, including increase of export turnover and
shift of export structure, development of export markets and development of
export products. environmental and social factors.
At present, Vietnam's textile and garment industry has not really
developed, the level of production is weak, labor productivity is low, the mode
of production is mainly outsourcing, skill workers are not high, lack of skills.
and not trained to make up a large proportion. As a result, the export of textiles
and garments has not really developed, causing the impact from both
macroeconomic factors and factors from enterprises.
With the current trend of globalization and trade liberalization, Vietnam
has signed a number of free trade agreements including the Comprehensive and
Progression Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP will
create an enabling environment for the development of the garment and textile
exports of each participating country, opening up the advantages and
disadvantages for Vietnam's export of textiles and garments.
Based on the urgent demand both in theoretical and practical aspects for
the development of Vietnam's textile and garment exports, PhD student carried
out the PhD thesis "Developing export of Vietnam's garment and textile when
joining TPP (now CPTPP) with the purpose of studying and clarifying the
rationale for developing textile and garment export, the development of
Vietnam's textile and garment export and Solutions for development of
Vietnam's garment export when participating in CPTPP. The contents of the
thesis include:
- Systematizing theories on the development of the textile and garment
export of a country. In it, outline concepts and implications of the concepts of
export, export development, export development of textiles and garments; The

system of criteria for evaluating the development of the export of textiles and
garments in which methods of quantification can be quantified. At the same
time, clarification and analysis of factors affecting the development of textile
and apparel exports include elements of the international environment,
macroeconomic factors and factors of enterprises.
- The thesis has synthesized, analyzed and evaluated the current status
of Vietnam's export of garment and textile products to countries such as turnover
and growth rate of textile and garment export turnover to countries in which
There are CPTPP countries, the shift of textile and apparel structure and the shift
of market structure, the criteria of comparative advantage expressed, the index
of export specialization, the intra-industry trade index. In addition, the
assessment of the current situation of factors affecting the development of textile
and garment export with positive and negative impacts from the international


25

environment as well as the State's policies as well as factors from the joint
ventures. . Since then, the thesis has shown 6 successes, 7 limitations and causes
from the State and enterprises as a practical basis for proposing solutions.
- An analysis of the international and domestic contexts that affect the
export of textiles and clothing, which analyzes the evolution of the
Comprehensive and Progression Agreement for Trans-Pacific Partnership
(CPTPP), which provides some key points. The CPTPP deals with the export of
textiles and garments, and analyzes the advantages and disadvantages of CPTPP.
The thesis has put forward five views, five orientations for development
of Vietnam's textile and garment exports. From there, propose solutions and
macro solutions to enterprises, with special attention to the development of input
materials, investment in modern production technology, advanced development
market and transforming from the mode of production to direct production,

training and development of human resources in the sector as well as in textile
and garment enterprises in order to develop Vietnam's textile and garment
export.
The main result of this thesis is the theoretical and practical contributions
of the thesis to develop Vietnam's textile and garment export. In the process of
doing the thesis, PhD student has received the help of dedicated teachers,
scientists, managers as well as businesses. Thank you very much and look
forward to receiving comments from teachers and scientists to complete the
thesis.