EVFTA important catalyst to textile-garment exports
Businesses need to meet EVFTA commitments to export textiles and garments to the EU - photo: VNA |
Textile-garment is among industries benefiting from the EVFTA’s implementation. The agreement’s tax reductions will provide a major catalyst to textile and garment exporters to the EU. The EVFTA's rules of origin for textiles and garments are simpler than those of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Specifically, CPTPP has rules of origin from yarn onwards, while EVFTA only has rules of origin from fabric onwards.
However, as soon as EVFTA takes effect, Vietnamese textiles and garments have to compete fiercely with products of the same kind from China, Bangladesh, Turkey, India, and Cambodia. The EVFTA’s rules of origin from fabric onwards have challenged Vietnamese textile and garment enterprises that have to import up to 80 percent of fabric needed for export garment production, with imports from China accounting for 50 percent of the total, those from the Republic of Korea (RoK) 18 percent and those from Chinese Taipei 15 percent. Another major challenge is that the EU is a discerning market with high quality requirements and its REACH regulation adopted to improve the protection of human health and the environment from the risks that can be posed by chemicals, while enhancing the competitiveness of the EU chemicals industry.
DTY fiber production at the Dinh Vu Polyester Fiber Plant |
In 2023, Vietnam's textile and garment exports faced numerous difficulties, including inflation and political instability that affected the purchasing power of the country’s major export markets. According to the customs authority’s data, Vietnam's textile and garment exports to EU countries in September 2023 decreased by 24.23 and 29.53 percent compared to the previous month and September 2022, respectively, with the total in the first nine months of 2023 dropping 13.98 percent compared to the same period last year.
Textile and garment exports to the EU accounted for 11.53 percent of the country’s total in the first nine months of 2022, with the nine-month rate in 2023 reaching 11.48 percent, a slight decrease.
As the EU attempts to make transition to a more sustainable and circular economy, exporting nations will confront new laws and criteria to access the EU market, notably when it comes to garments and textiles.
Mulled over for a few years, the EU wants to introduce measures to increase circulation and reduce waste from textiles.
In July, the European Commission (EC) proposed a targeted revision of its Waste Framework Directive. The initiative aims to accelerate the development of separate collection, sorting, reuse, and recycling for textiles in the EU, in line with the bloc’s strategy for sustainable and circular textiles.
With the move, the EU would strive to ensure that all textile products put on the market are durable, repairable, and recyclable, reducing the harmful effects of fast fashion on the economy.
Tran Ngoc Quan, Vietnamese Trade Counsellor in Belgium and the EU, said Vietnamese businesses need to have an appropriate business plan if this recommendation becomes a mandatory regulation, as it will affect production and business.
The EC is proposing to introduce mandatory and harmonized extended producer responsibility (EPR) schemes for textiles in all member states. Such schemes have been successful in improving the management of waste from several products, such as packaging, batteries, and electric and electronic equipment.
Producers will cover the costs of management of textile waste, which will also give them incentives to reduce waste and increase the circularity of textile products – designing better products from the start. How much producers will pay to the EPR scheme will be adjusted based on the environmental performance of textiles, a principle known as eco-modulation.
See also
Vietnam, France agree to strengthen their strategic partnership
11:21 | 07/05/2024 Vietnam and EU
HCM City strengthens cooperation with German firms
08:51 | 11/04/2024 Vietnam and EU
Thai Binh boosts investment, trade cooperation with Germany
10:16 | 28/03/2024 Vietnam and EU
Dutch businessmen explore potential investment and trade opportunities in Vietnam
11:06 | 22/03/2024 Cooperation
Vietnamese, Dutch firms sign aquaculture cooperation deal
08:52 | 21/03/2024 Vietnam and EU
Vietnam, Italy see strong potential in agriculture cooperation
08:34 | 04/03/2024 Vietnam and EU
See more news
Vietnam seeks stronger cooperation with French city in different fields
08:44 | 22/02/2024 Vietnam and EU
Vietnam ready to build green transformation cooperation model with EU
10:06 | 05/02/2024 Vietnam and EU
Vietnam, Germany boost cooperation in industry, trade, energy
09:14 | 24/01/2024 Vietnam and EU
Vietnam pledges to nurture traditional ties with Hungary: PM
09:02 | 21/01/2024 Vietnam and EU
Vietnam, EU take advantage of EVFTA
06:00 | 30/12/2023 Vietnam and EU
Ministry ready to support partnerships between Vietnamese, Belgian firms
09:18 | 02/12/2023 Vietnam and EU
Vietnam, Denmark cooperate in developing green agriculture
09:03 | 26/11/2023 Vietnam and EU
PM hosts Romanian Minister of Economy, Entrepreneurship and Tourism
08:33 | 21/11/2023 Vietnam and EU
Vietnam, France to enhance industrial and trade relations
14:40 | 14/11/2023 Vietnam and EU
Vietnam, Hungary increase direct trade promotion
06:00 | 14/11/2023 Vietnam and EU
Merger of two railways to be completed by the end of this year
11:00 | 08/05/2024 Economy
Timber and wood product exports grow
09:06 | 08/05/2024 Major exports
Vietnam, Australia eye to step up trade, investment cooperation
08:37 | 08/05/2024 Vietnam and other regions
Firms get updates on EU regulations on imported agricultural products, foods
06:10 | 08/05/2024 Foreign trade
Fansipan Rose Festival 2024 offers tourists fascinating experiences
06:00 | 08/05/2024 Tourism
Multimedia
Green transformation in tourism starts with correct understanding, awareness: expert
06:00 | 07/05/2024 Tourism
Vietnamese celebrated director to head jury at Shanghai International Film Festival
06:00 | 07/05/2024 Lifestyle
HCM City achieves $127 million in tourism revenue over five-day holiday
06:00 | 04/05/2024 Tourism
Optimising UNESCO titles for national development
06:00 | 04/05/2024 Lifestyle
7 places that are worth a visit in Điện Biên
06:00 | 05/05/2024 Tourism
Decree fosters industrial cluster development
06:00 | 07/05/2024 Policy
Decree regulates conditions for cars from abroad to Việt Nam
06:00 | 06/05/2024 Policy
Fresh policies come into effect in May 2024
06:00 | 03/05/2024 Policy
Employment Law to be revised for better assurance of employees’ interests
10:53 | 01/05/2024 Policy
IC development challenges Dong Nai Province
14:00 | 07/05/2024 Industry promotion
Textile and garment businesses face difficulties due to lack of domestic supply
05:00 | 07/05/2024 Industry
Automobile industry reported strong sales in Q1
06:00 | 05/05/2024 Industry
DPPA boots renewable energy, competitive electricity market
15:06 | 03/05/2024 Energy
Foreign, domestic investment in Ba Ria - Vung Tau rises sharply
09:22 | 07/05/2024 FDI
Foreign investors encouraged to invest in petroleum storage infrastructure
08:27 | 05/05/2024 Investment
Cambodian media values Vietnam's foreign investment attraction
09:50 | 03/05/2024 Investment
Thai Binh province rolls out red carpet for Dutch businesses
10:45 | 30/04/2024 FDI
MoF refuses to cut import tax for some materials of animal feed production
09:36 | 07/05/2024 Finance-Banking
Government proposes extending VAT cut until year end
09:10 | 05/05/2024 Finance-Banking
Stock market upgrade to help Vietnam lure another 10 bln USD in investment
09:23 | 03/05/2024 Stock Market
VND30-trillion credit package for forestry, fisheries businesses
06:00 | 30/04/2024 Finance-Banking
Is it possible to deny collection for waste unsorted at source?
06:00 | 07/05/2024 Environment
PM asks for effective preventive solutions against forest fires
06:00 | 05/05/2024 Environment
Heat records broken, more hot weather forecast for May
06:00 | 04/05/2024 Environment
Vietnam faces climate change challenges
06:00 | 02/05/2024 Environment
2024 VinFuture Prize records 1,469 nominations
06:00 | 07/05/2024 Science - Technology
HCM City: Centre for Fourth Industrial Revolution to debut in September
06:00 | 05/05/2024 Science - Technology
Vietnam’s digital products to go global
06:00 | 04/05/2024 Science - Technology
Digital transformation events for banking sector slated for May
06:00 | 03/05/2024 Science - Technology
Bình Thuận works to stop fishing vessels from infringing on foreign waters
06:00 | 08/05/2024 Province
Điện Biên Phủ Victory shows strength of intelligence, public consensus: Officer
06:00 | 07/05/2024 Society
HCM City works to put Metro Line No. 1 into operation soon
06:00 | 06/05/2024 Society
Online administrative procedures to be processed on one app only from July 1
08:49 | 04/05/2024 Society
Habeco, northern beer Industry icon, reports largest quarterly loss in four years
06:00 | 07/05/2024 Vietnamese Brands
PV Gas unions launch book donation program
14:00 | 06/05/2024 Companies
Vietnam Airlines reports profit in H1
06:00 | 05/05/2024 Vietnamese Brands
Phenikaa targets to train over 8,000 semiconductor chip design engineers by 2030
06:00 | 04/05/2024 Vietnamese Brands
“The Road to Dien Bien Phu” full of emotion
14:59 | 07/05/2024 Lifestyle
Vietnamese celebrated director to head jury at Shanghai International Film Festival
06:00 | 07/05/2024 Lifestyle
HCM City launches international photo contest
06:00 | 05/05/2024 Lifestyle
Optimising UNESCO titles for national development
06:00 | 04/05/2024 Lifestyle
Fansipan Rose Festival 2024 offers tourists fascinating experiences
06:00 | 08/05/2024 Tourism
Green transformation in tourism starts with correct understanding, awareness: expert
06:00 | 07/05/2024 Tourism
7 places that are worth a visit in Điện Biên
06:00 | 05/05/2024 Tourism
HCM City achieves $127 million in tourism revenue over five-day holiday
06:00 | 04/05/2024 Tourism