Vietnam’s “Youth Online” reported on December 13 that Vietnam and South Korea signed the “Vietnam-European Union Free Trade Agreement” (EVFTA) fabric cumulative origin agreement.
Vietnam’s Ministry of Industry and Trade stated that this is a particularly important agreement for Vietnamese companies to assist companies in using high-quality textile raw materials and auxiliary materials produced in South Korea and eliminate exports to the EU The bottleneck in the origin of textile fabrics is because South Korea has also signed a free trade agreement with the European Union.
According to EVFTA regulations, in addition to meeting strict quality standards, in order to enjoy the benefits of reduced tariffs, companies must also ensure strict origin requirements, among which “from fabrics to Start’s rules of origin require that fabrics used to make clothing must be woven in Vietnam or within an EU member state.
According to data from Vietnam’s Ministry of Industry and Trade, the EU is the market with the largest demand for textiles and clothing, with annual imports exceeding US$250 billion. However, Vietnam’s textile and apparel exports to the EU are still very small. In 2019, the export volume was only US$4.3 billion, accounting for 2% of the EU market share.
Experts estimate that if EVFTA comes into effect, Vietnam’s textile and apparel exports to the EU will increase by about 67% by 2025 compared with before signing.
Vietnam’s Ministry of Industry and Trade stated that signing the above-mentioned accumulation agreement with South Korea on origin is “very necessary and timely” to help Vietnamese companies immediately solve difficulties and take advantage of opportunities Export textiles and clothing to the EU market as soon as possible.
