Several domestic and foreign-invested cotton projects in Vietnam are rushing to begin operating in anticipation of competition from across borders after the free trade agreements goes into effect. Businesses have sought to invest in cotton production plants in a bid to participate in the industry and increase their competitiveness. Two of the largest FDI projects are trying to build cotton and fiber factories.

Vietnam has called for investment in producing materials for the garment and textile sectors, and to embrace both opportunities and challenges arising from FTAs. In the first five months of the year, the country's imports of cotton and fiber were higher against the same period last year both in terms of quantity and value. However, the country’s exports of these items are also on the rise. There has been a 20 per cent and 5.4 per cent year-on-year rise in quantity and value respectively.

Right now China supplies 60 to 70 per cent of the material used in the country's textile sector. But China is not part of the TPP block. Using Chinese materials for Vietnamese garment and textile products could be a violation of the TPP agreement. It was for this reason that Vietnamese garment and textile firms have hurried to invest in cotton factories.