Italian Enterprises Invest In Textile Industry In Vietnam

Recently, many Italian enterprises have invested in Vietnam's textile industry in order to obtain the preferential tariff benefits of the "Vietnam Europe free trade agreement" (evfta), and export them back to the European market. Vietnam's vice minister for Industry and commerce, Mr. Hoang Quoc Vuong, said that the Vietnam Europe free trade agreement has opened up more business opportunities for Vietnam and Italy, especially small and medium-sized enterprises.

According to the data of Vietnam General Administration of customs, the bilateral trade volume between Vietnam and Italy in 2019 was 5.3 billion US dollars, which was 13.7% higher than that in 2018, of which the export of Vietnam increased by 18.46% to 3.44 billion US dollars.

According to Vietnam's Ministry of industry and commerce, the Vietnam EU free trade agreement, which will take effect in August 2020, is expected to help the textile and garment industry exported to the EU grow by 67% by 2025. In particular, the export of textiles, clothing and shoes to the EU is expected to reach 13.49 billion euro (US $15.23 billion) by 2035, which will be the industry that will benefit the most. Vietnam EU free trade agreement is expected to bring Vietnam's export of ready-made garments to the EU to more than 100 billion US dollars a year.

However, in order to enjoy preferential tariff, in addition to meeting strict quality conditions, Vietnamese enterprises must also comply with more stringent rules of origin. According to the rules of origin of the Vietnam Europe free trade agreement, it means that the fiber produced by Vietnam, the European Union or countries with which the two countries have signed free trade agreements can enjoy preferential tariff treatment. This is still the weakness of Vietnam's textile and garment industry, because most of the raw materials have never signed free trade with the EU The countries of agreement import.