The signing of the much-awaited EU-Vietnam Free Trade Agreement (EVFTA) in Hanoi on 30 June 2019, has infused a new spirit in Vietnam’s garment and textile sector.
After the European Union Trade Commissioner Cecilia Malmström and Vietnam’s Minister of Industry and Trade Tran Tuan Anh signed on the dotted lines marking a new chapter for Vietnam, the country’s garment makers are now gearing up to make the most of this trade agreement.
The industry is of the opinion that as most of the countries exporting textiles and garments to the EU don’t have FTAs with the bloc, if Vietnamese firms can meet the origin requirements, the EVFTA will open up enormous export opportunities for Vietnam.
As per experts, The EVFTA is a very good, balanced and comprehensive agreement which includes the elimination of almost all tariffs for goods originating from Vietnam.
It may be mentioned here that with the EVFTA coming into effect, Vietnam’s total export turnover to the EU market is expected to increase by around US $ 16 billion.
As per the Vietnamese Government, EVFTA has the potential to boost Vietnam’s exports to the EU by 20.0 per cent by 2020.