Vietnam’s garment sector will face a host of challenges from the EU - Vietnam Free Trade Agreement, with the greatest being a shortage of raw material supplies. Despite much effort having been made, 90 percent of the sector’s imported materials are from markets not covered by the agreement. This means that locally-made garments will not be entitled to tax incentives relating to material origin.
Figures show that despite its high export value, the local garment sector merely completes simple stages such as processing. The high requirements of the EVFTA’s “rules of origin” therefore present a major challenge.
Once the EVFTA comes into effect, the existing average tax rate of 12 percent will be reduced to zero over a period of three to seven years for garment and textile products.
To benefit from the tax reductions, Vietnamese textiles and garment producers must strictly obey “rules of origin”, meaning that raw materials must be sourced from Vietnam or the EU and the cutting and sewing processes must take place in either./.
The European Council on March 30 passed a decision to ratify the EU-Vietnam Free Trade Agreement (EVFTA), paving the way for the deal to come into force.
The Ministry of Industry and Trade has been coordinating with relevant ministries and departments to complete all necessary procedures for the ratification of the EU-Vietnam Free Trade Agreement (EVFTA).
In his recent phone talks with European Commissioner for Trade Phil Hogan, Minister of Industry and Trade Tran Tuan Anh exchanged views on a number of issues related to the European Union – Vietnam Free Trade Agreement (EVFTA) and bilateral cooperation and trade in the context of the raging COVID-19 pandemic.
Free trade agreements (FTA), including the latest one signed between Vietnam and the EU, will benefit the domestic fertilizer sector, with more diverse import and export markets, experts said.
Free trade agreements, including the latest one signed between Vietnam and the EU, will benefit the domestic fertilizer sector, with more diverse import and export markets, experts said.
Foreign investors are planning to expand their operations in Vietnam this year, creating an opportunity for industrial property development despite the COVID-19 pandemic, according to experts.
The National Assembly (NA) Standing Committee has agreed with a proposal of the State President that the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) will be submitted to the upcoming 9th NA session for approval.