It is anticipated that Vietnam would benefit a lot through the Trans-Pacific Partnership (TPP), especially, the textile and garment industry of the country. However, concerns have been raised because of the sudden rise of Chinese projects. Duong Dinh Giam, former Director of the Institute for Industrial Policy and Strategy Studies of the Ministry of Industry and Trade giving an overview of the situation said the concern is rightly placed as TPP regulates that raw materials used to produce the commodities to enjoy tax privileges must be produced in the member countries of the TPP, whether they are produced by domestic or foreign firms. He added that currently, Chinese enterprises have invested heavily in textile manufacturing in Vietnam.
This would mean that Chinese businesses will not only benefit from the zero tax rate, but also from Vietnam’s exports of their products. And it seems that China’s ‘export’ of obsolete and polluting textile-garment technology to Vietnam, would turn the nation into a technology landfill. Giam believes that not just Chinese companies, rather companies from other countries could bring in outdated, polluting technology into Vietnam. Besides, foreign firms, including those from China, bring their technology, capital and even manual workers to Vietnam, which is an issue.
He believes to prevent the abuse of TPP to bring outdated technology and even polluting factories from China, Vietnam needs to strictly control the import of technology into the country. Moreover, the implementation of Vietnam’s hundreds of regulations and standards on technical barriers to control quality of imported technologies and goods and raw materials will help combat this situation.