Vietnam's "Young People Online" reported on December 13 that Vietnam and South Korea signed the "Vietnam-EU Free Trade Agreement" (EVFTA) fabric cumulative origin agreement.
The Ministry of Industry and Trade of Vietnam stated that this is a particularly important agreement for Vietnamese companies. It assists companies in using high-quality textile raw materials produced in South Korea and eliminates the bottleneck of the origin of textiles exported to the EU, because South Korea has also signed a free trade agreement with the EU. agreement.
According to EVFTA regulations, in addition to meeting strict quality standards, in order to enjoy the preferential tariff reduction, companies must also guarantee strict origin requirements. The "starting from fabric" origin rule requires that the fabric used to make clothing must be in Vietnam Or woven in EU member states.
According to data from the Ministry of Industry and Trade of Vietnam, the EU is the market with the largest demand for textiles and apparel, with an annual import value of more than US$250 billion. However, the export volume of Vietnamese textile and clothing to the EU is still very small. In 2019, the export value was only 4.3 billion US dollars, accounting for 2% of the EU market share.
Experts estimate that if EVFTA takes effect, by 2025, Vietnam’s textile and apparel exports to the EU market will increase by approximately 67% compared to before the signing.
Vietnam’s Ministry of Industry and Trade stated that it is “very necessary and timely” to sign the above-mentioned agreement on accumulation of origin with South Korea, so as to help Vietnamese enterprises solve their difficulties immediately and take advantage of the opportunity to export textiles and garments to the EU market as soon as possible.
Vietnam and South Korea sign a
