Vietnam’s textile exports are likely to rise to $40 bn this year as the European Union (EU)-Vietnam Free Trade Agreement (EVFTA) has been signed, according to the Vietnam Textile and Apparel Association (VITAS). Exporters of footwear and apparel goods will have a good chance of growth in the EU market due to EVFTA, said the country’s Ministry of Industry and Trade.
EVFTA was signed in Hanoi on June 30. The Ministry asked exporters who want to expand their market share in the EU to comply with its regulations, particularly those on product origin and food safety, according to some reports.
However, apart from meeting rules of origin and standards on quality, firms must comply with commitment to social responsibility, which includes attention to environmental safety and information transparency related to labour and production environment. This has forced many Vietnamese firms to go green in their production.
As over 60 per cent of production material for the garment-textile, leather-footwear, plastic, food and other sectors are imported, in the long-term, the shortage of supplies could turn into a hurdle for Vietnam to take advantage of tariff policy of the FTAs it has signed, according to VITAS Chairman Vu Duc Giang.