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Saturday, 03 August 2019 01:59

FTA will give Vietnam tariff benefits

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Vietnam will get tariff benefits from the free trade agreement with the European Union. Garments, worth around 10 per cent of Vietnam's exports and currently subject to EU tariffs of around nine per cent, will be by far the biggest beneficiary of the FTA. The tariff-slashing free trade agreement promises to bring an influx of orders and pave the way for Vietnamese garments to dominate the European market. All tariffs imposed on garment-textile products will gradually go down to zero per cent, with 77 per cent of the goods seeing their tariff immediately eliminated right after the pact comes into force.

The EU is the top apparel importer in the world and the second biggest import market of Vietnam’s garment-textile products.

However, staff shortages have already started to manifest in Vietnam's garment industry, where the vast majority of manufacturers are focused on labor-intensive sewing and cutting processes. Factories’ demand for workers has increased by seven per cent since 2018. The industry lacks human resources especially high-level employees who have specialised skills. Finding people to operate dyeing or weaving machines is one thing. These are workers and can be trained. But finding experienced chemical engineers with a thorough knowledge of chemistry and dyeing is another.