Vietnamese textile and garment stocks may receive a boost after Vietnam it completes free trade agreements with various countries and organisations. Textile-garment stocks were among the strongest gainers in the last 12 months with an increase of 27 per cent in value, behind only construction material producers.

Most local producers have fulfilled their production capacity until the end of this year and lower input costs had helped them increase profit margins. Many positive factors can boost the local market such as the price to earnings ratio. The country has a lot of investment opportunities compared to other markets such as Malaysia and Thailand.

Vietnam’s textile and garment industry would be among three industries receiving the most benefits from the free trade agreements that the country is now finalising, including the Trans-Pacific Partnership. Vietnamese textile-garment producers are now expanding production all around the country and some of them are completing procedures to be listed on the stock market in the near future. The industry has recorded a good annual growth rate of 17 to 18 per cent.

TPP is expected to help boost foreign direct investment in the industry. This in turn will help Vietnam’s textile-garment industry provide more job opportunities for local people and produce cheap and high quality products for both domestic and overseas markets.