The European Vietnam Free Trade Agreement (EVFTA) that was signed on 30 June in Hanoi may help the country’s apparel and textile sector achieve its export target of US $ 40 billion for the year.
This was reportedly confirmed by the Vietnam Textile and Apparel Association (VITAS) recently.
Earlier in July, VITAS had expressed its displeasure at the 8.6 per cent growth the industry had achieved in the first 6 months of 2019. He had said that the industry required to grow by 11 per cent to reach the export target by the year end.
However, now that EVFTA has been signed, exporters of apparel products will have a bright chance to grow in the EU market, said Ministry of Industry and Trade.
The ministry added that the exporters will have to comply with EVFTA regulations if they had to increase their market share in EU – and that includes meeting rules of origin as well as focusing on environmental safety and information transparency related to labour and production environment.
VITAS believes though EVFTA may help the industry achieve the export target this year, going forward it may be difficult for Vietnam to take advantage of FTA’s tariff policy as more than 50 per cent of materials for apparels, textiles and footwear are still imported.
It’s only by year end, or may be after the first quarter of 2020, one would know how much the industry has gained from EVFTA.