The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles, from fiber through finished sewn products, welcomes the Trump administration’s recent announcement of the launch of a Section 301 investigation into the currency valuation practices of Vietnam.

In 2019, the US trade deficit with Vietnam stood at $55.8 billion, including a $14.6 billion deficit in textiles and apparel specifically. Vietnam has demonstrated tremendous growth in the US textile and apparel market and is the second largest supplier after China, holding a 15.8% import market share for January-July 2020.

Scrutinizing unfair practices such as currency undervaluation by Vietnam is one more action the administration can take to eliminate predatory trade practices by countries that continuously undermine domestic production and that of our free trade partners.

With so much discussion about onshoring production, including personal protective equipment (PPE), NCTO believeS this investigation is necessary, and looks forward to further opportunities to provide input as part of the formal investigation process.