Vietnamese Yarn Is Riding On The Dust, And The EU And Vietnam Have Abolished 99% Tariffs.

According to the data released, the top three countries of cotton yarn imports in July were Vietnam, India and Uzbekistan, with an import volume of 80 thousand and 600 tons, 15 thousand and 300 tons and 13 thousand and 100 tons (1-7 tons of cotton yarn imported from Vietnam, India and Uzbekistan respectively were 488 thousand and 900 tons, 229 thousand and 200 tons, 99 thousand and 300 tons, accounting for 41.43%, 19.42%, 8.42%). On the one hand, despite the signing of the second phase protocol of the Pakistan free trade agreement (Pakistan imports zero tariff), China's exports to China are still completely stragglers, squeezed out of the top three and replaced by Uzbekistan. On the other hand, Vietnam's imports of yarn are getting stronger and stronger in 6-7 months, leaving India, Uzbekistan, Pakistan and so on.

In the past two years, facing the domestic preferential policies and excellent geographical location, clothing brands from home and abroad have gone to Vietnam to open a "journey to Vietnam" tour. The international big group collectively runs away from China, not only considering the cost factors, but also includes the wisdom philosophy of risk sharing.

From now until the end of the year, Vietnam's textile and clothing exports will maintain a good growth momentum, with an export volume of about 160-180 billion US dollars. At present, a number of enterprises have completed full year orders.

The Vietnamese Prime Minister recently announced that the Communist Party would be the first Communist Party to give up power in the history of mankind, and promised to carry out democratic elections within 5 years. Vietnam will build an "American style country" that recognised universal values. The judiciary is independent. The Central Committee and the party committees at all levels do not interfere with the judicial work. They agree that judicial independence is the universal principle, and that the representatives of the local government are prohibited. The Supreme Court can hear corruption cases of senior leaders of the party and government; Congress representatives and government officials must declare their personal property.

In June 25th, the European Union announced that it would sign a comprehensive trade and investment agreement with Vietnam through the approval of EU member states in June 30th. According to the Vietnam European Free Trade Agreement, the European Union and Vietnam will cancel 99% of the tariffs, and most tariffs will be lifted immediately after the agreement comes into force. In addition, the agreement will reduce the non-tariff barriers faced by the EU, and will also open Vietnam's services and public procurement markets to EU enterprises.

Vietnam's textile and garment exports are growing rapidly, thanks to changes in multinational purchasing strategies.

With the maturity of Vietnam's manufacturing industry, the current procurement strategy of garment companies in the United States has been upgraded from "China + many countries" to "China + Vietnam + many countries". The typical purchase of clothing companies in the United States is that 30-50% comes from China, 11-30% comes from Vietnam, and the rest from other countries.

Not only the clothing companies in the United States, Japan's largest clothing chain, UNIQLO, Vietnam supply ratio of about 40%. According to the Ministry of industry and trade of Vietnam, the textile and clothing industry maintained a growth momentum in the first 5 months of 2019, with an export volume of US $12 billion 61 million, an increase of 10.3% over the same period last year. It is noteworthy that the key markets such as the United States, the European Union, South Korea, China, ASEAN, the CPTPP and other key parties have achieved substantial growth.

From now until the end of the year, Vietnam's textile and clothing exports will maintain a good growth momentum, with an export volume of about 160-180 billion US dollars. At present, many enterprises have accepted annual orders. It can be seen that the total export volume of textiles and clothing reaches US $40 billion, which can be achieved.

The chairman of Vietnam Textile Association, Wu De Jiang, said that the reason why Vietnam's textile and garment industry should increase its import intensity is that some parts do not support the development of textile and garment industry, especially the bleaching and dyeing chemical industry. Textile and garment industry can quickly get rid of dependence on imports, rapidly increase export value and make full use of the benefits of FTA.

Foreign capital is constantly coming, and more than 60 Chinese A share listed companies invest in Vietnam.

In the first quarter of 2019, Vietnam's merchandise import and export volume exceeded US $100 billion. Over the same period, total imports and exports of Chinese goods amounted to US $1 trillion. Vietnam's exports grew by 14% in the first quarter, compared with 6.7% in China. This growth rate basically continued the momentum of Vietnam's rapid export growth in 2018, and the 13.3% increase in exports in 2018 surprised the world.

For a long time, Vietnam's import and export volume exceeded $100 billion for the first time in 2007, and exceeded $200 billion in 2011, reaching 300 billion US dollars in 2015, 400 billion US dollars in 2017, and 480 billion 100 million US dollars in 2018, which is bound to break through 500 billion US dollars in 2019.

Obviously, the growth rate of Vietnam's imports and exports is accelerating, especially exports, and behind this is the foreign investment coming in. 70% of Vietnam's exports depend on foreign investment. Foreign investment growth and export growth are synchronous.

According to incomplete statistics, since 2008, a total of more than 60 A share listed companies in China have announced relevant investments in Vietnam, of which nearly 20 enterprises have issued notices from 2017 to 2018. Over the same period, the scale of foreign investment received by Vietnam continued to rise, and Vietnam's total foreign direct investment in 2018 reached US $35 billion 400 million.

According to the Foreign Investment Bureau of Vietnam's Ministry of investment, Vietnam's foreign investment volume reached $10 billion 800 million in the first quarter of 2019, a sharp increase of 86.2% over the same period last year, the highest level in 3 years. This will further strengthen the development potential of Vietnam's export oriented economy.

At present, Vietnam is still the first choice for many Chinese enterprises to transfer their capacity. 1800 kilometers away from Haiphong City, Hu Zhiming's surrounding area is an important manufacturing base. A senior manager of an accounting firm said that after May 2018, many Chinese entrepreneurs came to consult with them, hoping to complete the registration and landing of Vietnamese companies within 4 months.

Around the city of Hu Zhiming, textile enterprises from China are also increasing investment. They even use the "golden year of Vietnam's textile industry for ten years" to describe this process. Huafu fashion, Tianhong textile, Ru Tai and Bailong Eastern large textile enterprises have expanded their capacity in Vietnam.

The ambition of Vietnam and other Southeast Asian countries in the textile industry

Never underestimate Vietnam's ambition to become a "world factory".

Changes in gross domestic product in Vietnam

　　 Since the reform and opening up in 1986, Vietnam's GDP growth rate has remained around 6% - 7% for many years, up to 7.08% in 2018, reaching a 11 year high.

Over the years, more and more foreign capital has been favored by Vietnam. In 2018, Vietnam attracted foreign investment amounting to US $35 billion 460 million, actually reaching US $19 billion 100 million, an increase of 9.1% over the same period last year.

　　 Vietnam exported $244 billion 700 million in 2018, and imports and exports totaled US $428 billion 800 million, equivalent to two times that of GDP, which ranks second in Asia, after Singapore.

While the domestic textile industry is struggling, Southeast Asian countries, represented by Vietnam, are rapidly catching up with the textile market. As we all know, with the rapid rise of domestic production costs and labor costs, the textile industry is transferring to Southeast Asian countries in large volume, and Vietnam is one of the most important countries to undertake the transfer of China's textile industry. At present, Vietnam has become the third largest textile exporter in the world, second only to China and India.

Vietnamese textile, a competitive competitor

　　 On April 24th, Vietnamese Vice Premier Zheng Dingyong signed the government's decision on 18/2019 /Q. -TTg, which prohibits the import of machinery, equipment and production lines with a technology life span of 10 years or more, and will take effect in June 15, 2019.

This means that Vietnam will no longer be satisfied with the production market of clothing, and will directly enter the fabric and raw materials market. It can be briefly summarized as follows: if all textile enterprises put into production in Vietnam want to enjoy tariff preferences in Vietnam, the origin of raw materials such as yarns, fabrics and accessories for textiles must be in Vietnam (at least 90% of the country's origin).

As a result, all textile enterprises put into operation in Vietnam have to reduce their dependence on China's fabric and raw materials supply, thus increasing investment in Vietnam's textile industry and improving the industrial chain. This is a great challenge for China's textile industry.