As per Vietnam Textile and Apparel Association (VITAS), Vietnam’s garment-textile lured $2.8 billion worth foreign direct investment (FDI) in the first half of this year, bringing the total FDI in the sector to nearly $17.5 billion. This has been mainly due to FTAs such as the CPTPP and the EU-Vietnam Free Trade Agreement (EVFTA) – although they are yet to come into force, which have created great attraction amongst foreign investors as they bring huge opportunities for Vietnam’s garment-textile sector.
The CPTPP will enable Vietnam to increase shipments to CPTPP member countries that spend up to $40 billion on garment and textile products every year. The EVFTA, expected to take effect at the end of this year, will also offer ample opportunities for Vietnamese textile and garment products to ship to the European market thanks to tariff preferences.
The EU is Vietnam’s second largest export market. Given the current tariffs ranging between 10 and 12 per cent which will be slashed to zero, it will boost Vietnam’s goods to this enormous market.
