70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Vietnam textile industry to benefit from FTAs
Hai Yen - Khac Kien 10:40, 2020/12/05
The RCEP with flexible rule of origins is seen as a plus point for Vietnam’s textile industry to further penetrate potential markets.

Despite mounting challenges from the Covid-19 pandemic, new free trade agreements, including the recently-signed RCEP, along with local firms’ own efforts in a new circumstance, are opening up new opportunities for exports.

 Production at Garment 10. Photo: Thanh Hai. 

Chairman of the Vietnam Textile and Apparel Association (Vitas) Vu Duc Giang said this year, many textile firms have to move away from their traditional products to produce medical protective gear, especially face masks.

“Such a change would require further investment in technologies and retraining of workers to adapt to a new environment, and consequently would lead the textile sector to fall short of the export target of US$42 billion for 2020,” added Mr. Giang.

At this time of last year, Vietnamese textile firms were flooded with pre-orders even for the first half of the following year. However, the Covid-19 pandemic has changed customers behavior globally as the world is now focusing on basic necessities and health equipment. 

“Major markets for Vietnam’s textile and apparel products are currently struggling with the Covid-19 pandemic, causing declines of 80 – 90% in their purchases,” informed Mr. Giang.

This year, Vietnam’s textile exports are estimated to reach US$35.27 billion, down 9.27% year-on-year or US$3.6 billion. The contraction in growth is significantly lower compared to other countries, taking into consideration that global demand for textile products has declined by 25%.

New opportunities from RCEP

Mr. Giang noted for next year, the textile industry would face both opportunities and challenges, especially as the Covid-19 pandemic could persist for another one to two years.

“In 2021, the textile export revenue is forecast to hit US$37 – 38 billion, but on the condition that the world could contain the Covid-19 pandemic in the first quarter and purchasing power from major markets recovers,” Mr. Giang asserted.

Mr. Giang also pointed to the RCEP with flexible rule of origins as a plus point for Vietnam’s textile industry, in turn opening up more opportunities for exports. As such, Vietnam’s garment products could further penetrate the Chinese and Japanese markets, which previously were limited due to requirements of the rule of origins.

“FTAs are driving forces for the local textile industry to access new customers, technologies and corporate governance, for which the sector could realize the export target of US$100 billion by 2030,” he said.

TAG: Vietnam textile RCEP FTA rule of origins China Japan face masks protective gear
Other news
23:03, 2024/02/25
Hanoi to host new high-value IT parks
These technology parks in the three major cities will give priority to the development of IT services and products with a high added value.
21:16, 2024/02/24
Vietnam's labor market soars with 51.7 million employed in Q1
Vietnam's labor market is anticipated to exhibit positive signs of recovery in 2024, although it may not fully revert to pre-Covid-19 levels.
13:45, 2024/02/24
Hanoi envisions becoming leading semiconductor center
Hanoi has been designated as the country’s political brain and an important economic, cultural, and scientific center.
18:08, 2024/02/23
Vietnam to produce clean hydrogen by 2030
Such a move would help Vietnam realize the country's goal of achieving net-zero emissions by 2050.
14:08, 2024/02/23
PM urges major mobile carriers to lead in semiconductor chip research
Vietnam envisions becoming a center for the semiconductor chip industry by 2030 with activities including design, packaging, and testing.
16:48, 2024/02/22
Supermarkets in Hanoi offer post-Tet promotions to boost demand
More than 1,300 retail outlets in Hanoi were open from the first to the sixth day of the Lunar New Year, instead of remaining closed as is usually the case.