Garment, textile sector welcomes trade pacts' opportunities

08:25 | 19/08/2018 Cooperation

(VEN) - Under the auspices of the Ministry of Industry and Trade, the Vietnam Textile and Apparel Association organized a conference on the impact of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) on Vietnam’s garment and textile sector. The event attracted the interest of economists and businesses.

garment textile sector welcomes trade pacts opportunities

High trade surplus

The textile and garment sector recorded a trade surplus of US$7.6 billion in the first half of the year, an increase of 13.87 percent compared to the same period last year. According to the Vietnam Textile and Apparel Association Chairman Vu Duc Giang, the trade surplus value of the garment and textile sector has increased over the years.

Vietnam’s key export markets such as the US, the CPTPP countries, the EU, the Republic of Korea and China have also recorded growth in recent times.

Flexible adaptation

Tran Thanh Hai, deputy director of the Foreign Trade Agency under the Ministry of Industry and Trade, said that among free trade agreements to which Vietnam is a signatory, the CPTPP and the EVFTA have the strictest rules of origin. The CPTPP requires rules of yarn origin, while the EVFTA requires rules of fabric origin. Given the current state of Vietnam’s garment and textile sector, it is difficult to meet these requirements.

Vuong Duc Anh, deputy head of the Foreign Trade Division under the Foreign Trade Agency, said the rules of origin stipulated in the CPTPP and the EVFTA are strict, but flexible to help garment and textile businesses gradually adapt. For example, it allows the import of 187 types of goods to meet shortages in the 11 Pacific Rim countries participating in the CPTPP.

Tran Thanh Hai stressed that the government has made greater efforts in signing free trade agreements to provide opportunities for market expansion. Therefore, businesses need to change their production methods to make the most of such opportunities.

Vietnamese businesses should also closely monitor market developments, especially the trend of global protectionism to avoid commercial lawsuits. The Ministry of Industry and Trade is committed to helping businesses with efforts to remove non-tariff barriers and limit trade remedies by importers.

The Vietnam Textile and Apparel Association plans to continue activities to help businesses better understand the CPTPP and the EVFTA.

Export turnover of the Vietnamese garment and textile sector could exceed US$35 billion this year.

Viet Nga