09:48 | 15/08/2019 Trade
The export revenue of Vietnam’s garment and textile industry was estimated at US$18.34 billion in the first seven months of 2019, a year-on-year increase of 10.5%, according to a report from the Ministry of Industry and Trade (MoIT).
|The signing of the EU-Vietnam FTA in June 2019 is expected to help Vietnamese garment and textile sector to penetrate wider into the EU market - Illustrative image|
The export revenue hike was due to opportunities and market expansion as the result of the signing of free trade agreements (FTA) such as the CPTPP, with a tax exemption roadmap to 0% and other incentives.
In addition, the signing of the EU-Vietnam FTA in June 2019 is also expected to help the Vietnamese garment and textile sector to penetrate wider into the EU market.
In the January-July period, the production of fabric from natural fibers went up by 8.4% while fabric from synthetic fibers rose by 11.5%. The production of casual clothes also increased by 8.8% compared to the same period last year.
The export revenue of footwear of all types also surged by 13.8% year-on-year to reach US$10.4 billion in the first seven months of 2019.
The MoIT said that the despite increasingly large export revenue, Vietnam’s apparel and footwear sectors maintain dependence on foreign direct investment (FDI) enterprisesand mainly do outwork with a large proportion of materials being imported.
The ministry also suggested that enterprises in these areas should establish production chains and meet the rules of origin of FTAs to take advantage of incentives and compete with other rivals.