Series of signed FTAs will boost the Vietnam Textile Sector

Series of signed FTAs will boost the Vietnam Textile Sector

The Vietnam Textile and Apparel Association (VITAS) feels that this year many Vietnamese garment companies have kept high growth in the traditional markets, such as the United States (US), South Korea, the European Union (EU) nations and member states of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

‘A series of recently-signed free trade agreements (FTAs) is expected to boost the sector,’ VITAS vice president and general secretary Truong Van Cam said. The global demand for apparel and textiles is increasing by 1-2 per cent annually which has increased competition amongst them.

VITAS called on the Vietnamese government to devise planning and grant licences to major garment industrial areas to attract investment in weaving and dyeing.

Most FTAs have rules on product origin for fibre and fabrics while Vietnam imports up to 80 percent of materials, Van Cam said.

While the EU offers zero per cent tax on apparel from Cambodia and Myanmar and the United States waives tax for several Cambodian goods, Vietnamese apparels are still subject to 17.7 per cent and 9.6 per cent tax when being exported to the United States and the EU respectively.

– Apparel and Textile News, Apparel Talk, Indian Apparel