Date
16 December 2017
A worker checks a Chinese textile production line in Vietnam. Manufacturers that operate in Vietnam stand to benefit from the Trans-Pacific Partnership. Photo: Reuters
A worker checks a Chinese textile production line in Vietnam. Manufacturers that operate in Vietnam stand to benefit from the Trans-Pacific Partnership. Photo: Reuters

TPP seen sharpening Vietnam’s manufacturing edge

The Trans-Pacific Partnership (TPP) signed this week is expected to benefit garment manufacturers and shoemakers that have factories in Vietnam.

Shenzhou International Group Holdings Ltd. (02313.HK), Pacific Textiles, Ltd. (01382.HK), Texhong Textile Group Ltd. (02678.HK), Yue Yuen Industrial Holdings Ltd. (00551.HK) and Stella International Holdings Ltd. (01836.HK) are among the companies poised to gain from the landmark deal, the Hong Kong Economic Journal reports, citing Credit Suisse.

Shenzhou International plans to raise its Vietnam production capacity to 40 percent in coming years from 19 percent.

Pacific Textiles is considering a similar target, up from 18 percent.

Texhong Textile is ramping up capacity to 53 percent from 46 percent and Stella to 25 percent from 20 percent.

TPP brings together 12 Pacific Rim countries which account for about 40 percent of the global economy.

It is expected to boost competitiveness in the manufacturing sector, Credit Suisse said.

It said the agreement might drive manufacturers to low-cost centers such as Vietnam but the impact on China will be limited given development constraints in the Southeast Asian country.

[Chinese version中文版]

– Contact us at [email protected]

VW/JP/RA

Hong Kong Economic Journal

EJI Weekly Newsletter

Please click here to unsubscribe