Analyst Pin-board: Textile Industry - Bottlenecks from Weaving and Dyeing Need Improvements to Benefit from EVFTA
The Vietnam - Europe Free Trade Agreement (EVFTA) will take effect from August 1, 2020. Preferential tariffs for Vietnamese goods exported to EU are expected to support the growth of textile exports. However, because textile & garment exported to the EU is mainly in the group of ‘long tariff’ reduction schedule, the impact of preferential tariffs on the whole industry is likely to be insignificant in the beginning. But above all, the bottlenecks from weaving and dyeing are the main obstacles that hinder Vietnam's textile and garment products to benefit from EVFTA.
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