hese FTAs will bring about a host of chances and preferential tax policies for Vietnamese exporters. In this new context, the garment and textile industry is predicted to enjoy huge benefits.
Importers of Vietnamese garments are paying tax rates of over 10%. Therefore Vietnamese producers have to keep prices low to remain competitive. However, this will not be a problem once FTAs with South Korea and the Eurasian Economic Union come into effect.
Vietnamese businesses have for a long time mainly been outsourcing options as they have had to import materials at high prices. But once tariff barriers are removed, manufacturing activities will be boosted. Garment companies in the Mekong Delta already have a strategy to take advantage of this.
According to the Vietnam National Textile and Garment Group, Vietnamese garment exports reached 12 billion USD in the first half of 2015 with the US being the largest market. These figures are predicted to continue rising as Vietnamese enterprises seek to penetrate new markets in the coming time.
