Challenges for textile enterprises before the EVFTA Agreement
18-08-2018
When the EVFTA Agreement comes into force, it will bring many opportunities for the business but with them will be challenges.
Export turnover of textiles and garments in the first six months of 2018 is estimated at $ 16.5 billion, up 16.5% over the same period of 2017 and is expected to reach $ 35 billion by the end of the year. This is an impressive figure, which is attributable to the expectation of two free trade agreements in addition to the internal competitiveness of Vietnam's garment industry, such as price, quality, or delivery time. the Comprehensive Partnership and Trans-Pacific Partnership (CPTPP) and the Vietnam-EU Free Trade Agreement (EVFTA).
According to information from a seminar held on 18th July by the Ministry of Industry and Trade and the Textile Association, it is likely that these two agreements will come into effect early in 2019. Enterprises have long waited for the agreement Free trade as effective as with EVFTA has been in place for 3 years since the end of the negotiation process. However, the most important opportunities are always accompanied by challenges as this is also a time when Vietnam's garment industry needs to move more strongly.
Most of Vietnam's garment enterprises are small and medium, so the capacity of production, value chain formation or negotiation capacity is limited. However, in the flow of international trade, there remains one unknown that is the trend of trade protectionism, culminating in the US-China trade tension. How will this impact on Vietnamese garment industry?
By vtv.vn
