To compensate for the lack of export orders, textiles and clothing firms in Vietnam seek to expand in the EU market. In the first eight months of 2020, revenues from Vietnam’s textiles decreased by 11.6 per cent. According to Vietnam Textile and Apparel Association (VITAS), this decline is expected to continue by 15 percent until the end of the year.
Although domestic consumption is anticipated to rise 5 per cent by the end of 2020, Le Tein Truong, General Director, Vietnam National Textile and Garment Group (Vinatex), does not expect this to compensate for the shortage of export orders. The EVFTA deal enables businesses to hit an export turnover of $7 billion. For Vietnam to benefit entirely from EVFTA, businesses should shorten delivery times and simplify administrative processes, minimize clearance and time of inspection, adds Truong.
Manufacturers should also start using the accumulated rules of origin to import products out of countries that have signed FTA with Vietnam and the EU. They should also work in the field of sports, medical and advanced textiles and workwear, hi-tech, and developing manufacturing technology, enhancing the capability of management and engaging in social and environmental factors.