HOW THE TEXTILE AND APPAREL SECTOR TAKE FULL ADVANTAGES OF NEW FTAS?

HOW THE TEXTILE AND APPAREL SECTOR TAKE FULL ADVANTAGES OF NEW FTAS?

This is a key issue analyzed by international economic experts at IN-DEPTH CONSULTATION WITH INTERNATIONAL ECONOMIC EXPERTS “UTILIZE FTAS TO PROMOTE GARMENT & TEXTILE INDUSTRY” for businesses in the sector with co-organizer COLORBOND® – Pre-painted steel premium brand of BlueScope.

Free Trade Agreements (FTAs) that Vietnam has signed in recent years all define textile product preferences based on rules of origin. However, how to benefit from these FTAs is what businesses in the sector are concerned about.

At the intensive consultation, experts gave an overview of rules of origin as well as how a textile and apparel enterprise can benefit from rules of origin in FTAs, especially CPTPP.

Regarding these issues, representatives from companies also raised problems and difficulties in proving the origin, in the process of exporting textile products to CPTPP member countries or EVFTA.

Experts analyzed that there are exceptions in the list of CPTPP for supply shortage. This is exactly the point that Vietnamese businesses can take advantage of. Out of 194 HS codes, there are 186 HS codes that allow permanent import from the outside, from anywhere and still consider the origin by the Agreement. And 8 other HS codes with 5-year term will be eligible for incentives until 2024.

Besides, there may be a solution of self-certification of origin instead of applying for certification from an authorized agency of the Ministry of Industry and Trade as Canadian importers may agree. Thus, Vietnamese textile and apparel enterprises can take full advantage of FTAs if they can take full advantage of regulations on supply shortage.

In the framework of the event, expert also pointed out that the escalating US – China trade war may increase US demand because of restrictions from Chinese rivals in a predictable sequence.

First of all, this trade is an opportunity for Vietnam’s textile and apparel products and this has contributed to a shift in Vietnam’s export structure, including textiles, electronics,… in fact, Vietnam’s textile and garment exports to the US always rank first in terms of turnover, reaching US $9.95 billion in the first 8 months of 2019, equivalent to 45.7% of the country’s textile and apparel export turnover, up by 13.1% over the same period in 2018, which shows that this market has had a clear growth and there is room for export.