Vietnam’s textile and garment exports are poised for 15 percent decline to $34 billion this year due to the COVID-19 impact. However, this decrease is lower than the 20-25 per cent plunge in global demand this year, says Vietnam Plus. Domestic companies have been making efforts to pump up revenue by producing lower-added value products to ensure cash flow.

The recently-signed Regional Comprehensive Economic Partnership (RCEP) is likely to boost China’s demand for garments made in Vietnam, say experts. The country is also likely to benefit from increasing demand from Japan. It requires Vietnamese companies to prove their products are sourced from other ASEAN countries or from Japan to enjoy incentive tariffs while most of Vietnamese products are made from materials imported from China.

Besides, the scrapping of tariffs on many textile and garment exports to the EU thanks to the EU-Vietnam Free Trade Agreement will push the sector’s growth.