According to Tran Thanh Hai, deputy director of the Import and Export Bureau of the Ministry of Industry and Commerce of Vietnam, Vietnam’s signing of free trade agreements (FTAs) with various countries has helped the textile and garment industries expand their markets. After these FTA agreements come into effect, the import taxes on textile and garment products in the EU, Japan, South Korea, Russia, Canada and other top import markets will be reduced to 0%.
However, Vietnam’s textile and garment industry currently faces many difficulties. In order to promote exports to FTA participating countries, especially the top export markets, textiles and garments must comply with strict origin rules in these markets (starting from the fiber or fabric stage). Currently, Vietnam does not have a textile dyeing and finishing industry, and the main raw materials are Mainly imports and produces export products. In addition, most of Vietnam’s textile and garment industries are currently focused on processing projects at the garment stage with low added value.
According to statistics from the General Administration of Customs of Vietnam, the import value of raw and auxiliary materials for the textile and garment industry in September 2019 was approximately US$1.82 billion, and the cumulative value in the first nine months of this year was approximately US$1.82 billion. $18 billion. Among them, the import value of fabrics is approximately US$9.73 billion, raw materials and auxiliary materials are approximately US$4.38 billion, cotton is approximately US$2.07 billion, and fiber is approximately US$1.81 billion. The main import markets for Vietnam’s textile and garment industry include China, South Korea, Taiwan, Japan, ASEAN, the United States, etc.
