Vietnam Textile and Apparel Association (VITAS) recently organised an event in Hanoi to spread awareness among Vietnamese textile companies about the impact of trade agreements on textile industry.
The workshop, held on 18 July, highlighted the benefits, demerits and the possible hindrances that can be caused due to the recently signed CPTPP and the upcoming free trade agreements (FTAs) between the EU and Vietnam.
The countries that are a part of EU have been more committed to Vietnam and therefore EU-Vietnam FTA commences a new generation of FTAs between both Vietnam and EU.
The CPTPP, signed early this year, will help enhance economic growth between member countries and currently accounts for 13 per cent of total global GDP. If US also becomes a part of CPTPP, then the total global GDP can rise to 40 percent.
As far as as EU-Vietnam FTA is concerned, Vietnam has become the second big trading partner of EU in ASEAN – next only to Singapore. The trade value of Vietnam notably stood at US $ 55.3 billion last year.
To enjoy the benefits of CPTPP, the garment and textile sector of the country will have to overcome some challenges as well. One of the primary chalenges will be for the local company to combat the FDI in Vietnam.
Vu Duc Giang, Chairman, VITAS, said that the Vietnamese garment and textile companies should take measures in developing production lines and investing on training workforce.
He also urged the companies to not only invest on technology but also to implement business strategies in order to stay competitive.
