News Report The Trans Pacific Partnership (TPP) final deal is yet to be signed, but it has started pinching Bangladesh readymade garment (RMG) sector, according to a source. During the last 10 months (January-October) of 2015, Bangladesh apparels export to the US market grew 11.40 per cent while Vietnam export to US market rose to 13.86 per cent. Bangladesh earned US$4.66 billion and Vietnam earned US$9.03 billion during the period. This data was released by the Office of Textiles and Apparels under the US Commerce Department. The RMG export earnings from the USA by Bangladesh and Vietnam during the corresponding period of 2014 were US$4.19 billion and US$7.93 billion respectively. After the signing of the TPP, Vietnam will enjoy duty free export facility to the US market along with other markets under the TPP domain. On the other hand, Bangladesh will have to compete Vietnam in US market by paying around 15 per cent tax. The world apparel exporters circle predicted that export growth of Vietnam would increase more after the implementation of the TPP, which would be a matter of concern for Vietnam’s competitors like Bangladesh and China. The Chinese apparel exports to the US market also affected due to rise in Vietnam’s export. The Chinese apparel exports to the US market grew only 2.37 per cent during the January-October period of the current calendar year. Sensing the backlash of the TPP, the Chinese authorities have started shifting large volume of pipeline investment to Vietnam for survival of its RMG sector and also to reap the benefit of the TPP. Some of the renowned global retailers started to give additional importance to Vietnam and shifted a good number of manpower from Bangladesh offices to Vietnam, it is learnt.
