With tax barriers for less sensitive commodities being lifted within no later than three years since the adoption of EVFTA, Vietnam’s garment and footwear industries are predicted to be beneficial.
With tax barriers for less sensitive commodities being completely lifted within no later than three years since the adoption of the EU-Vietnam Free Trade Agreement (or EVFTA), Vietnam’s garment and footwear industries are predicted to be greatly beneficial from the trade deal.
The Europe is home to major global value chains in garment and footwear industries. Not to mention, consumption power for garment and footwear of the market is huge.
The current garment export tariff to the EU is 9.6%. Yet once the deal takes effect, it will be 0 percent. If it is adopted this year, the export value of garment will be over 40 billion USD, 4 billion more than that of last year. Even if it is yet to take effect this year, the growth will still be 2.5 billion higher.
In order to get themselves equipped prior to the adoption of EVFTA, domestic firms have proactively invested in improving materials as the trade deal imposes strict regulations on origin traceability.-VNA
