According to Vietnam’s “Industry and Trade News” report on April 30, Vietnam’s textile and garment industry is considered to be the industry that most deserves to enjoy the benefits of the Free Trade Agreement (FTA). However, due to the lack of raw materials and auxiliary materials, Although they are self-sufficient, Vietnamese domestic textile and garment enterprises have not been able to fully enjoy the FTA tariff preferences. The Vietnam Textile and Apparel Association stated that currently, the average usage rate of certificate of origin (C/O) for exporting textile and apparel products to countries that have signed FTA is about 58%. Among them, when exporting to Japan under CPTPP, the C/O usage rate is about 60%. to 70%, while for exports to the EU under EVFTA, the usage rate is only 20-30%.
Vietnam Textile and Apparel Group stated that the main obstacle to the low C/O utilization rate and the company’s failure to enjoy dividends is the origin of raw materials. The group mainly processes clothing, which is difficult to Meet the requirements for yarn and fabric origin. In addition, domestic enterprises also face strong competition from foreign-invested enterprises. Since 2015, foreign investment in the textile and apparel field has exceeded US$20 billion. Most foreign-funded enterprises are able to achieve self-sufficiency in raw materials, which invisibly puts great pressure on domestic enterprises.
The report stated that the government should further strengthen the development of supporting industries to meet the demand for raw materials. At present, it should focus on developing dyeing and finishing projects to solve the problem of dependence on imported fabrics and increase the domestic value of exported goods. content. </p
