As per a Korean Herald report, henceforth, apparel and clothing items produced in Vietnam with South Korea-made fabrics will face lower tariffs in the European Union as they would enjoy the benefits of the Vietnam-EU free trade agreement. Previously to enjoy these benefits, clothes needed to be made with locally produced fabrics, reveals Ministry of Trade, Industry and Energy. The new amendment will create stronger demand for South Korean products compared to other rival producers such as China and Taiwan.

Vietnam imports around 80 per cent of its textiles. In 2019, the country imported 55 per cent of its fabrics from China, followed by South Korea and Taiwan at 16 and 12 per cent, respectively. Japan accounted for 6 per cent. Last year, South Korea shipped fabrics worth $2.35 billion to Vietnam a 18.4 percent year-on-year decline.