Garment firms in Bac Ninh ready for EVFTA

The EU-Vietnam Free Trade Agreement is expected to present enterprises with numerous opportunities to expand markets, with its preferential tariff measures. To seize the opportunities, however, many enterprises must overcome problems associated with a range of technical barriers.

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The Dap Cau Garment Joint Stock Company in the northern province of Bac Ninh operates in the garment and textile industry, with main export markets including the US, Japan, and the Republic of Korea.

The company has invested in technology and modernised its equipment to benefit from the opportunities brought about by the EU-Vietnam Free Trade Agreement.

In addition to investing in technology and equipment, many companies in the garment and textile industry have also studied the commitments made in the free trade deal, in particular those regarding tariffs and origin requirements, so they can adjust their manufacturing process and raw material sources as well as improve their workforce to boost capacity and enhance product quality.

The EU will immediately abolish 85.6 percent of import tariffs on goods that represent 70.3 percent of Vietnam’s total export turnover to the EU.

After seven years, 99.2 percent of tariffs will have been removed on goods representing 99.7 percent of Vietnam’s export turnover to the bloc.

As well as initiatives from enterprises, relevant agencies have also implemented effective support programmes.

In addition to tariff benefits, the EVFTA is expected to present opportunities for the importation of high-quality machinery and accessing standard raw materials in the EU. Enterprises, however, must obey technical barriers and improve their product quality and competitiveness./.

VNA