Home / Knowledge / News / Apparel/Garments / FTA to boost Vietnamese garment exports to EAEU
FTA to boost Vietnamese garment exports to EAEU
Oct '16
The free trade agreement (FTA) between Vietnam and the Eurasian Economic Union (EAEU) that took effect on October 5 this year is expected to boost Vietnamese garment exports. Under the FTA, 90 per cent of tariff lines have been cut or reduced. The EAEU consists of five member countries, viz Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.

The EAEU region has GSP of $2.2 trillion and population of 183 million. Increasing consumption in this region offers a potential market for Vietnamese goods, including textiles and apparel.

Duties were removed on 59 per cent of tariff lines the day the FTA took effect. This offers great advantage for Vietnamese companies while competing with other countries that export to EAEU region.

However, to enjoy zero duties, Vietnamese goods must meet two criteria. First, they must meet rules of origin, labelling requirements and hygiene standards. Second, the volume of exports must be no more than 1.5 times of the average volume that Vietnam exported to the region in the last three years. This is called trigger safeguard measure.

As per the FTA, the EAEU would cut import tariffs from 10 per cent to zero per cent for garment and textile products and apply a trigger safeguard measure. So, in a way, there is an upper limit to expansion of Vietnamese exports to this region.

If Vietnamese exports exceed the trigger volume of 1.5 the average of last 3 years, then EAEU will conduct an investigation to decided whether to apply most favoured nation (MFN) tariffs.

Logistics remains another obstacle in increasing export volume to the EAEU. Currently, it takes one to two months time for Vietnamese goods to reach EAEU member countries, participants at a recent seminar in HCM City were told.

Last year, Vietnam-EAEU trade increased by 6 per cent year-on-year to $3.6 billion. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search