By signing a free trade deal with the European Union, Vietnam has become the first developing country in Asia which has received tariff reductions on 99 per cent of goods between the 28-member bloc and the Southeast Asian country.

Almost 11 per cent of Vietnamese apparel exports to the EU will get complete duty waiver at the time of enforcement of this agreement. The European Union is Vietnam’s second largest export market after the United States, with the main exports being garment and footwear products. Vietnam is the sixth largest readymade garment exporting nation to EU, having four per cent of the total market. After the ratification of the agreement, Vietnam won’t have to pay the 12 per cent duty anymore on garment exports to the EU.

Vietnam also has free trade agreements with Asean, China, Japan, South Korea, India, Australia, New Zealand, Chile, Japan, South Korea and the Eurasia Economic Union. All these facilities make Vietnam one of the largest attractions for readymade garment buyers.

Vietnam has been making huge progress in the textile sector due to a sustainably developed industry and strong labor codes. The country is an emerging giant in the global textile and apparel industry.