Like many other industries, garment and textile industry too has been hit massively this year by the pandemic across the globe and the story has been same in Vietnam too. However, there are some things to cheer about for the industry in Vietnam.
Several Italian firms have lately shown their keenness to invest in Vietnam’s textile sector so as to take full advantage of the European-Vietnam Free Trade Agreement (EVFTA).
While announcing the same, Hoang Quoc Vuong, Deputy Minister of Industry and Trade, said that EVFTA has opened several business opportunities between Vietnam and Italy – and this includes small and medium enterprises as well.
EVFTA, which came into effect on 1 August 2020, provides 99 per cent elimination of custom duties between the EU and Vietnam.
The General Department of Vietnam Customs says that Vietnam’s trade with Italy was US $ 5.3 billion in 2019 – a year-on-year (Y-o-Y) surge of 13.71 per cent as exports went up by 18.46 per cent to reach US $ 3.44 billion.
Vietnam’s garment and textile industry is elated ever since EVFTA has come into effect.
The Ministry of Industry and Trade believes that EVFTA could help its garment and textile industry increase its exports to EU by 67 per cent by the year 2025.
The garment, textile and footwear sector hopes that EVFTA will help their exports increase by US $ 15.23 billion by 2035.
Vietnam, however, knows it isn’t going to be easy. While the industry will have to keep meeting international standards of quality, it will also have to strictly comply with origin requirements.
In simple words, exports to EU must use fabric made in Vietnam, EU or countries that have FTAs with both EU and Vietnam. Vietnam knows this and is on its way to make it happen.
Watch this space to know more!