Want to make the most of EVFTA...Here’s the recipe from industry insiders

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Why are apparel suppliers of Vietnam unhappy? Sund
ay, 30 June 2019 marked an important chapter for
the Vietnam garment and textile sector! The
much-awaited trade agreement between the European
Union (EU) and Vietnam, the EU-Vietnam Free Trade
Agreement (EVFTA) took shape after European
Commissioner for Trade Cecilia Malmstrom and
Vietnams Minister of Industry and Trade Tran
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Tuan Anh, finally signed on the dotted
lines. With EVFTA coming into effect, Vietnams
total export turnover to the EU market is
expected to increase by around US 16
billion. The EU is Vietnams largest export
market (together with the US). Exports to the EU
have multiplied by three over the last five
years, representing US 30.9 billion in 2015
whereas imports accounted for US 10.3
billion. As per pundits, The EVFTA is a very
good, balanced and comprehensive agreement which
includes the
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elimination of almost all tariffs for elimination of almost all tariffs for
goods originating from Vietnam.
Naturally, the countrys garment and Naturally, the countrys garment and Naturally, the countrys garment and
textile sector is euphoric with industry textile sector is euphoric with industry textile sector is euphoric with industry
insiders outlining the next course o insiders outlining the next course o f
action to ensure Vietnam is able to action to ensure Vietnam is able to
exploit EVFTA to the fullest. Speaking on this
development, Chairman of Vietnam Textile and
Apparel Association (VITAS) Vu Duc Giang said
that although the rules of origin in the EVFTA
are not as strict as in the Comprehensive and
Progressive Agreement for Trans-Pacific
Partnership (CPTPP), Vietnamese firms still face
several challenges because most of them
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are into just cutting and sewing. Additionally,
most production materials still come from China,
which doesnt have a trade deal with the EU. As
such, Giang called upon the domestic businesses
to develop weaving and the supporting industries
to provide raw materials so as to capitalise on
the EVFTA. Most in the industry are, however, of
the opinion that as most of the countries
exporting textiles and garments to the EU dont
have FTAs with the bloc, if Vietnamese firms can
meet the origin requirements, the EVFTA will open
up enormous opportunities for exports.
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