Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

FTA to boost Vietnam’s exports to the EU

Vietnam’s textile and garment export turnover to the EU is expected to increase by 81 per cent following the free trade agreement.

Enterprises are expected to enjoy plenty of room to expand into new markets due to the regulations setting out tax reductions. Most notably, in the context of unpredictable global developments such as trade protectionism, trade tensions, and the ongoing impact of the Coronavirus, the trade deal could help Vietnamese garment and textile firms boost their exports, diversify markets, and achieve higher value add through the establishment of fresh supply chains.

However, rules of origin are a barrier. In order to qualify for tariff exemption under the free trade agreement, companies will need to increase localisation of fabrics because the rules of origin are applicable from the fabric stage onward. But for Vietnamese companies, China cannot be replaced as the main supplier due to its much lower costs. A significant portion of the textile industry's feedstock is from China. Even when the delays in supply from China due to the coronavirus pushed them to look for raw material imports from other markets such as South Korea, India, Bangladesh, and Brazil, many saw this as nothing more than a temporary solution.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo