The Trans-Pacific Partnership (TPP) agreement on tariff exemptions between member nations will be signed later this year.  It is expected to bring benefits to Viet Nam’s textiles and garments industry by increasing its competitiveness against other countries that are not TPP members. 

Therefore, Da Nang’s textiles and garments companies are making every effort to take advantage of this and further develop.

The city’s largest textiles and garments company, Hoa Tho, is a typical example.  It now has 7 member units and 3 subsidiaries, with a total of over 7,000 skilled employees.  The company’s total export turnover is likely to hit 100 million USD this year.  Modern facilities and equipment make up nearly 90% of the company’s total, and its products have won the trust of such large foreign customers as the Motives, Snickers, Decathlon, and Perry Ellis International companies.

A foreign expert assessing product quality at the 29 March Company

Another example is the 29 March Textiles and Garments Company.  This company’s strength is that it carries out the full range of processes from spinning and dyeing through to weaving, which helps to ensure the quality required by their customers. 

In order to enjoy the full benefits of the TPP, the company is taking the initiative of cooperating with domestic raw materials suppliers to ensure sufficient supplies for its production.  This will help to increase the proportion of domestic raw materials in the company’s export products.

In addition, the company will be changing their production methods from Cut-Make-and-Trim (CMT) to Free-On-Board (FOB) practices.  They will be operating as an original design manufacturer (ODM), original equipment manufacturer (OEM), and original brand manufacturer (OBM) in the domestic market.