FTAs bring greater benefits to Vietnamese garment and textiles

Experts in garments and textiles made the comment during the Viet Nam Saigon Garment and Accessories Machinery Expo 2013 (Saigontex 2013) held by the Viet Nam National Textile-Garment Corporation (Vinatex) in Ho Chi Minh City from April 11-14.

Viet Nam’s garment and textiles sector’s export turnover in 2012 reached US$17.2 billion, with export to the EU and US markets accounting for 60% with US$7.51 billion attained from the US and US$2.45 billion reaped from the EU.

In the first quarter of this year, garment and textiles export continued increasing, gaining US$4.2 billion, which was a 19 per cent increased over the same period last year.

The EU is the world’s biggest importer of garment and textiles, accounting for 50% of the global turnover. In 2012, it imported over US$240 billion worth of garment and textiles products and Viet Nam ranked 10th among exporters to the market.

According to experts, when the Viet Nam-EU FTA is signed, the tax for Viet Nam’s garment and textiles into the EU market can be reduced to 0 from the current 11.7%. Besides, Viet Nam can attract a huge investment flow from Europe into the sector.

Experts from the Centre for the Promotion of Imports from Development Countries under the Netherlands’ Ministry of Foreign Affairs, said that Viet Nam’s garment and textiles still had many untapped potentials such as political stability, open economic policies, cheap labour force and low production cost.

At present, the US is importing some 8 per cent of Viet Nam’s total garment and textiles exports. With the TPP, Viet Nam can increase its share in the market to 12-13%. Besides, TPP will also help increase investment into the sector as well as raise the added value for Viet Nam’s products.

By Ngoc Van