Last year, Vietnam’s earnings from textile and garment exports were up 16 per cent year-on-year. Vietnam is one of the world’s three biggest exporters of textiles and apparel. This year, the textile and garment sector has set a target of a 11 per cent year-on-year increase in exports. The industry has set a target of more than $60 billion worth of exports by 2025. Free trade agreements play an important role in helping Vietnam move up the value chain in the garment and textile industry.

The free trade agreement with the EU is expected to have a positive impact in the medium to long term. The EU is the second largest export market for Vietnam’s garment and textile sector, with more than 40 per cent of tariffs applied to garment and textile products expected to be reduced to zero per cent when the agreement takes effect. An increasing number of international buyers are sourcing products from Vietnam because supply chains for locally made products have improved and the country has joined more free trade agreements.

Participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership also will benefit the country in the long term, helping the garment and textile sector expand market share in Canada, Mexico, New Zealand and Australia and many other countries.