Vietnam And The EU FTA Will Become More Effective If The Textile Industry Comes Into Effect.

The EVFTA negotiations with the European Union in the eighth round of Brussels in from June 23 to 27, 2014 have made substantial progress. At present, the two sides will enter the consultation stage of the key project content. If these items are agreed and signed, the Vietnamese manufacturers will have more advantages to enter the EU market.

Franz Jessen, head of the European Union's Advisory delegation, said that the EU has always regarded Vietnam as an important trading partner because of its rapid economic growth and its geographical location in Southeast Asia. Therefore, in the process of consultation FTA, the two sides also actively discussed the operational mechanism of smooth customs and trade in addition to discussing tariff reductions.

Once EVFTA

The EU will abolish import tariffs of over 90 items. It is estimated that Vietnam's exports to the EU market will grow by 30%-40% before the agreement has come into effect. Vietnam's industries will benefit from textiles, footwear and food processing.

Vietnamese enterprises will not only be easier to enter the EU market, but also expand the domestic service market, which will help improve the efficiency of the overall economic development.

On the export side, the average tariff of Vietnamese goods exported to the EU market is 4%. Therefore, the EVFTA agreement will help Vietnamese goods export to the EU market in order to increase the competitiveness of Vietnamese goods in the EU market and promote investment efficiency.

According to Vietnam's economic expert Fan Zhilan (MRS PHAM CHI LAN), the establishment of a free trade agreement (FTA) between Vietnam and the EU can create a more smooth and open investment and operation environment, which will attract more EU and other countries to invest in Vietnam.

In fact, many EU representative manufacturers regard Vietnam as a better investment location for labor quality and intellectual property protection than other countries. We hope to help Vietnam to introduce advanced knowledge and improve production methods with its advanced technology, high-quality management and strong funds.

Vietnam's competitiveness in the regional and global markets.

At the same time, Vietnam will relax the conditions for the entry of large suppliers in the EU service market, and introduce EU funds to the high quality service areas that Vietnam needs to develop, such as finance, finance and insurance services, as well as energy, telecommunications, seaports and shipping services.

Vietnam's exports to China will double in 2020.

According to Vietnamese news sources, according to HSBC's Vietnam trade forecast report released before 2030, textile and clothing are still one of Vietnam's main export commodities, while Vietnam's exports of electronic products and mobile phones will increase significantly.

According to the report, Vietnam's textile and garment exports to China are expected to double by 2020.

In 2013, Vietnam's textile and clothing exports accounted for 6% of China's exports. Vietnam is making use of the advantages of low wages to promote textile and clothing exports, and has also attracted foreign investment in high-end clothing.