According to the Ministry of Industry and Trade (MoIT), Vietnam’s textile and apparel sector has found it difficult to fully benefit from free trade agreements (FTAs). The MoIT acknowledges that the industry is not making enough use of these benefits even though it is a major participant in FTA negotiations.
In response, the Ministry is encouraging partnerships with different entities, such as associations, municipalities, and ministries, in order to establish a cooperative ecosystem that will allow the textile industry to fully utilize free trade agreements.
With a projected deficit of around US$ 129 billion in 2022, the trade imbalance in East Asian markets presents a serious threat. Notably, trade deficits were valued at US $60.5 billion, US $37.9 billion, and US $13.42 billion with China, South Korea, and ASEAN, in that order.
Furthermore, over the previous four years, Vietnamese textiles’ market share in free trade agreements (FTAs) has grown very little, staying at 4% in the UK, 2% in Canada, and 13% in Mexico.
Vietnamese companies are lagging behind in embracing cooperation and development. Under the direction of the Prime Minister’s Office, the Vietnamese government is proactively coordinating fiscal and monetary policies to promote economic resilience in order to tackle these issues.
