Garments and textiles benefit most from EVFTA

VGP – Garments and textiles will benefit most when the EU-Viet Nam Free Trade Agreement comes into effective. The origin regulations on garments and textiles in EVFTA are simpler than ‘yarn forward’ rule of origin in the CPTPP.

July 08, 2019 9:34 AM GMT+7

Illustration photo

Deputy Minister of Industry and Trade Tran Quoc Khanh said that once the EVFTA officially comes into effect, garments and textiles will benefit most. Accordingly, within seven years, the current tariff of 15% will be eliminated to zero percent.

Mr. Khanh added that in CPTPP, the ‘yarn forward’ rule of origin is regarded as a challenge for the garment and textile sector. In the EVFTA, the EVFTA is applied from fabric.

In the first six months of 2019, Viet Nam’s garment and textile export was estimated at US$ 18.1 billion, up 9.3% against 2018. Overseas shipment to the U.S. was estimated at US$ 7.22 billion (up 11.7%); US$ 2.56 billion to the EU; US$ 1.89 billion Japan; US$ 1.63 billion to the RoK; US$ 2 billion to China.

Experts projected that a large number of garment and textile exporters to the EU have yet reached FTA. Hence, they hoped that Vietnamese enterprises would enjoy long-term benefits if they meet the origin regulations on garments and textiles in EVFTA./.

By Kim Anh