The proposed Free Trade Agreement (FTA) between the European Union (EU) and Vietnam, which is set to finalize in the coming year, is likely to boost textile and clothing trade between the two.
Speaking to fibre2fashion, Mr. Nguyen Van Tuan, deputy general secretary of Vietnam Textile and Apparel Association (VITAS), said, "EU is the main export market for Vietnam's textile sector and the region accounts for 16 percent (US$ 2.75 billion) of the total export revenue."
"With the implementation of Vietnam-EU FTA, the country's textile exports to the EU market will significantly increase and it could reach up to 20 percent," he opines.
The EU and Vietnam had started negotiations on a comprehensive FTA with a view to ensure an effective environment for trade and investment relations, back in June 2012. Last month, the two countries have finished the fifth round of negotiations in Hanoi, Vietnam.
Explaining further about the benefits of FTA to both the countries, Mr. Tuan says, "Vietnam textile industry will thrive and contribute to solve the bottleneck of textile industry in dyeing as well as finishing sector, enabling the textile industry to develop in a stable and sustainable environment."
"This is a good opportunity for the EU's fabric manufacturers to expand and to develop their business in Vietnam," he adds.
Vietnam is the third ASEAN country to hold FTA negotiations with the EU after Singapore and Malaysia, followed by Thailand. The next round of negotiations will be held in Brussels in January 2014.
