Recently, many Italian companies have invested in the textile industry in Vietnam to obtain preferential tariff benefits from the “Vietnam-EU Free Trade Agreement” (EVFTA) and export back to the European market. Mr. Hoasdfssdfsng Quoc Vuong, Deputy Minister of Industry and Commerce of Vietnam, said that the Vietnam-EU Free Trade Agreement has opened up more business opportunities for Vietnam and Italy, especially small and medium-sized enterprises.
According to data from the General Administration of Customs of Vietnam, the bilateral trade volume between Vietnam and Italy in 2019 was US$5.3 billion, an increase of 13.7% compared with 2018, of which Vietnam’s exports increased by 18.46% to 3.44 billion. Dollar.
According to the Vietnamese Ministry of Industry and Commerce, the Vietnam-EU Free Trade Agreement that will take effect in August 2020 is expected to help the textile and garment industry exported to the EU grow by 67% by 2025. , especially the export of textiles, clothing, and footwear to the EU, is expected to reach 13.49 billion euros (equivalent to 15.23 billion U.S. dollars) in 2035, and will be the industry that benefits the most. The Vietnam-EU Free Trade Agreement is expected to boost Vietnam’s garment exports to the EU to more than US$100 billion per year.
However, in order to enjoy preferential tariffs, in addition to meeting strict quality conditions, Vietnamese companies must also comply with stricter origin regulations. The rules of origin of the Vietnam-EU Free Trade Agreement require “starting with fabrics,” which means that exports to the EU must start with fibers produced in Vietnam, the EU, or countries that have signed free trade agreements with the above two countries in order to enjoy preferential tariffs. Treatment, this is still a weakness of Vietnam’s textile and garment industry, because most of the raw materials are imported from countries that have not signed a free trade agreement with the EU. </p
