Deputy Minister of Industry and Trade Hoang Quoc Vuong said the EVFTA has opened up many opportunities for the two countries’ businesses, including small and medium-sized enterprises.
According to the General Department of Vietnam Customs, trade with Italy was worth US$5.3 billion last year, up 13.71% year-on-year, as exports jumped by 18.46% to US$3.44 billion.
The EVFTA, effective from August this year, is expected to help Vietnam’s textile and garment industry increase exports to the EU by 67% by 2025, according to the Ministry of Industry and Trade. Textile, garment and footwear will be among the industries benefiting the most with their exports increasing by US$15.23 billion by 2035.
The EVFTA promises apparel export potential of more than US$100 billion annually. But to enjoy preferential tariffs, besides meeting strict quality criteria, Vietnamese businesses must also strictly comply with origin requirements.
The rules of origin apply from fabric onwards, meaning exports to the EU must use fabric produced in Vietnam, the EU or countries that have FTAs with both. This is still a weak point for the Vietnamese textile and garment industry because most of its raw materials are imported from countries that have not signed trade deals with the EU.
