The garment and textile industry is expected to obtain the export turnover of US$35 billion this year, $4 billion higher than last year number, as a result of abundant orders from free trade agreements.
Vietnam has signed 16 free trade agreements (FTAs), of these 10 have taken effect with many tax incentives creating chances for businesses to broaden goods consumption market. However the ratio of businesses getting the best out of FTAs has been low because they have not well prepared materials to meet origin requirements.
Continued dependence on raw and auxiliary materials imports will constrain Vietnam textiles and garment industry from taking real advantage of the various Free Trade Agreements signed by the country, industry insiders say.
Statistics by the Export Import Department under the Ministry of Industry and Trade show that only 35 percent of Vietnam’s export commodities are making the most of tax incentives from free trade agreements (FTAs) which the country has participated in.