High hopes from EFVTA in Vietnam, many experts sceptical

11 Apr '18

2 min read

Vietnamese textile and garment industry players are looking forward to the signing of the European Union-Vietnam Free Trade Agreement (EVFTA) with high hopes despite anticipating tough competition from foreign brands, but many experts caution it would be not so easy to take full advantage of the opportunities offered by EVFTA.

Vietnam’s deputy prime minister Vuong Dinh Hue said preparations for EVFTA signing are nearly over and the remaining issues will be ironed out before this summer, according to a report in a Vietnamese news portal.

Another expert felt the requirements on production, packaging and labelling will be technical barriers for Vietnam’s exports.

Vietnam’s 2017 textile and garment exports worth $31.16 billion were a rise of 10.23 per cent over the figures in the year before. Of this, exports to the EU brought $3.79 billion, up by 6.3 per cent, according to the country’s General Statistics Office (GSO).

According to Vietnam Textile and Apparel Association (VITAS) chairman Vu Duc Giang, the target of $36 billion worth of exports this year is within reach because of the FTAs.

Vietnam’s Rong Viet Securities affirmed the shock to Vietnamese enterprises caused by the sharp fall orders in 2016 will not reoccur. According to the company, the enterprises which have a large proportion of revenue from the EU will see a sharper increase in the number of orders.

These enterprises include Sai Gon Production, Trade & Garment JSC which has 32 per cent of revenue from the EU, TNG Investment & Trade JSC (21 per cent), Garment Company 10 (36 per cent) and Viet Tien Garment Corporation (18 per cent). (DS)

Fibre2Fashion News Desk – India

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