It will take a time to see whether FDI in Vietnam will rise following the recent conclusion of TPP negotiations as foreign investment in this country depends also on forex rate fluctuations, economic conditions on the periphery of Vietnam, Chief Representative of the Japan External Trade Organization (JETRO) Hanoi Atsusuke Kawada told BizNEWS in an interview via email.
A number of businesses have approached Jetro Hanoi to ask for opinions on investing in Vietnam’s apparel sector in the light of the TPP, the chief representative tipped.
He noted that it is unknown if Japanese direct investment in Vietnam will rise once the trade deal takes effect. Japanese investment projects recently licensed comprise mainly small and medium ones while the number of large investments in the manufacturing sector has declined due to the depreciation of the Japanese yen.
Mr. Kawada expected Vietnamese exports to TPP countries would soar. Shipments of apparel, footwear and seafood products to the U.S. are poised to expand. Tariffs of apparel products from TPP members in ASEAN to the U.S. market will become lower than those in non-TPP countries, he explained.
Chinese cloth manufacturers in Vietnam could benefit from the yarn-forward rule, he pointed out.