Vietnam’s garment and textile sector will benefit from new FTAs

The Hanoitimes – However, if China joins the CPTPP, Vietnam and the rest of the CPTPP countries will face fierce competition because China is the top ranked global textile exporter in both volume and value. Special tax preferential commitments under new-generation free trade agreements (FTA) will offer Vietnam huge opportunities to boost its textile and garment exports, experts said.   The CPTPP sets strict requirements on product origin One of the key contents of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is the removal of 95-98 percent of tariff lines as soon as the agreement enters into force. The remaining tariff lines will be cut over the next seven years, poised to aid the growth and export turnover of the two industries. According to the Vietnam Textile and Apparel Association (VITAS), the CPTPP will help Vietnam accelerate its growth and make the export market more balanced. The zero-percent tariffs will help the country’s textile and garment industry expand market share in countries with current high tax rates. As for the EU-Vietnam Free Trade Agreement (EVFTA), Managing Director of Vietnam’s largest textile and garment producer Vinatex Cao Huu Hieu said that the EU is currently the second largest market of Vietnamese textiles and garments after the US, with a growth rate of 7-10 percent yearly. Therefore, when joining the EVFTA, the sector’s exports to this market are forecast to surge sharply thanks to a lot of tax incentives. Experts estimated that the EVFTA is expected to provide the same… [Read full story]