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Textile, garment and seafood stocks welcomed the TPP wave

Avatar of Nick John By Nick John Dec24,2023 #Textile #welcomed
Textile, garment and seafood stocks welcomed the TPP wave 0
Textile, garment and seafood stocks welcomed the TPP wave 0

The textile industry is said to benefit the most from the TPP Agreement

After more than five years of negotiations, the 12 countries participating in the Trans-Pacific Partnership (TPP) have finally reached an agreement on the world’s largest trade agreement.

Research by the Peterson Institute for International Economics (PIIE) shows that when joining TPP, Vietnam will have the strongest increase in income and exports among 12 countries, increasing by 13.6% and 31.7% respectively.

Textile

Before yesterday’s negotiation conclusion meeting in Alanta (USA), a series of textile codes recorded a strong price increase in the period September 15 – October 5.

According to BIDV Securities Company (BSC), textiles and garments are one of the six industry groups that benefit the most from TPP.

However, with the `fiber onwards` rule of origin, businesses will have to use domestic materials or import from countries in the TPP to enjoy preferential tax rates.

Seafood

The seafood stock that has benefited the most in recent days is Hung Vuong Seafood stock (Stock code: HVG), increasing 14.4% to 17,400 VND.

With this industry, businesses exporting shrimp, octopus, and tuna will have many advantages in the Japanese market when import tax is reduced to 0% compared to the current average of 6.4%-7.2%.

Textile, garment and seafood stocks welcomed the TPP wave

Stocks that benefit from TPP have increased in price waiting for the TPP negotiations to end

Wooden

There are not many representatives listed on the floor, but one of them is Truong Thanh Wood Industry Group Joint Stock Company (Stock code: TTF), which has been quite sought after by investors in recent days when the company’s 6-month business results

In this field, Vietnam is the 6th largest wood exporter in the world and tops ASEAN.

Talking to VnExpress, Mr. Tran Ngoc Son – Director of Market Strategy at MB Securities Company said that in the medium and long term, the stock groups of textiles, garments, furniture, footwear, and seafood will definitely attract investors.

`This group of stocks has benefited greatly from the FTAs that Vietnam is and is about to join with Korea, the Eurasian Economic Union, the European Union, and the ASEAN Economic Community. Therefore, when TPP takes effect

Mr. Tran Thang Long, Head of Analysis at BSC Securities Company, has a more cautious view, saying that the TPP will include both positive and negative effects, with some industries benefiting greatly but also industries being negatively affected such as sugarcane.

`In fact, some textile stocks have increased sharply in price in the past 2 years due to positive information about TPP and are reflected in stock prices. TPP itself is too good, the important thing is that businesses

According to BSC’s report, industrial parks located near ports, airports, developed infrastructure, and preferential policies will attract foreign investors.

For the automobile industry, import turnover from Japan and the US accounts for about 13% of Vietnam’s total automobile import turnover.

The seaport and logistics industry benefits from increased import and export demand between Asia and North America.

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