Illustrative photo (Source: VNA) HCMCity (VNS/VNA) - More and more Italian textile firms are investingin Vietnam to take advantage of the EU-Vietnam Free Trade Agreement (EVFTA) andexport to the European market, experts said.
DeputyMinister of Industry and Trade Hoang Quoc Vuong said the EVFTA has openedup many opportunities for the two countries’ businesses, including small andmedium-sized enterprises.
Accordingto the General Department of Vietnam Customs, trade with Italy was worth 5.3billion USD last year, up 13.71 percent year-on-year, as exports jumped by18.46 percent to 3.44 billion USD.
TheEVFTA, effective from August this year, is expected to help Vietnam’s textileand garment industry increase exports to the EU by 67 percent by 2025,according to the Ministry of Industry and Trade.
Textile,garment and footwear will be among the industries benefiting the most withtheir exports increasing by 13.49 billion euros (15.23 billion USD) by 2035.
TheEVFTA promises apparel export potential of more than 100 billion USD annually.
Butto enjoy preferential tariffs, besides meeting strict quality criteria,Vietnamese businesses must also strictly comply with origin requirements. Therules of origin apply from fabric onwards, meaning exports to the EU must usefabric produced in Vietnam, the EU or countries that have FTAs with both.
Thisis still a weak point for the Vietnamese textile and garment industry becausemost of its raw materials are imported from countries that have not signedtrade deals with the EU./.
VNA
