Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News The value of China’s textile competitor Vietnam has skyrocketed! Nearly 2,000 Chinese companies have been affected

The value of China’s textile competitor Vietnam has skyrocketed! Nearly 2,000 Chinese companies have been affected



Effective August 1, the Vietnam-EU Free Trade Agreement (hereinafter referred to as the “Agreement”) came into effect, injecting strong impetus into Vietnam’s economic development. After Augus…

Effective August 1, the Vietnam-EU Free Trade Agreement (hereinafter referred to as the “Agreement”) came into effect, injecting strong impetus into Vietnam’s economic development.

After August 1, Vietnam will Tariffs on 71% of EU exports and 65% of EU exports to Vietnam are immediately exempted. According to the agreement, about 99% of tariffs in bilateral trade in goods will be gradually reduced until eliminated.

Vietnamese economists have compared this free trade agreement to “a highway connecting Vietnam and the European Union.” Thanks in part to its free trade agreement with the EU, Vietnam has set an economic growth target of around 5% for 2020. According to Vietnam’s official statistics, the textile export target for 2020 has been raised to a range of US$42 billion to US$42.5 billion.

Vietnam has thus become the first emerging market country among the Asia-Pacific countries to establish free trade relations with the EU. At the same time, it is also the second to establish free trade relations with the EU after Singapore. of ASEAN countries. Vietnamese companies will have the opportunity to enter the EU market with a population of 500 million, and Vietnamese consumers will also have the opportunity to obtain cheaper EU products and services.

In recent years, Vietnam’s series of reform measures have attracted the attention of the world. Vietnam has established a property disclosure system for officials, broken the tenure system for civil servants, and implemented an appointment system. This has eliminated deep-seated chronic diseases in the system and broken the last barrier hindering national development.

Vietnam has unique geographical advantages. It is in the core of Southeast Asia, has convenient transportation, and has huge demographic dividends. After breaking down institutional obstacles, according to Vietnam’s plan, it is not impossible to become a developed country in thirty years. possible.

01 Vietnam’s main advantages

●Vietnam’s tariff advantages

In terms of regional economic cooperation, Vietnam has signed more than ten bilateral and multilateral free trade agreements (FTAs). According to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnamese textiles and apparel exports enjoy zero-tariff import preferences in markets such as Japan, Australia, Canada and South Korea. After Vietnam and the EU sign the “Vietnam-EU Free Trade Agreement” (EVFTA), tariffs on a small number of clothing products will be directly reduced to zero, and tariffs on most clothing products will be gradually reduced to zero within 3-7 years after the agreement takes effect. However, various free trade agreements signed by Vietnam such as CPTPP and EVFTA still create some difficulties for Vietnamese textile and garment enterprises, that is, they have strict requirements on “rules of origin.” The rules of origin for textiles and clothing require the identification of yarn and fabric respectively. However, Vietnam currently has obviously insufficient weaving, dyeing and finishing production capacity, so it is difficult to enjoy zero-tariff preferential treatment.

●Vietnam’s demographic dividend

Vietnam has a huge demographic dividend . Vietnam has a land area of ​​approximately 330,000 square kilometers and a population of nearly 100 million.

Vietnam has a considerable population, which is larger than the combined population of the “Four Asian Tigers”. The most important thing is that the average age of Vietnamese is less than 30 years old, and the population aged 15-54 accounts for 70.17% of the population, with more than 30 million able-bodied people.

The adjustment of the global supply chain, the entry into force of the Vietnam-EU Free Trade Agreement, and Vietnam’s huge young population have all shown great temptation for manufacturing industries to shift to Vietnam.

●Vietnam’s manufacturing industry is in the ascendant

Vietnam’s land is shaped like an S It has a 3,260-kilometer coastline and unique port development conditions. In the era of industrial civilization, such geographical conditions are very suitable for the development of manufacturing industry.

As of the end of 2018, the total number of industrial zones in Vietnam was 327, of which 256 have been put into use, and 71 industrial zones are undergoing demolition compensation, and companies have moved in The rate reached nearly 75%.

Except industrial zones, Vietnam has 17 coastal economic zones. As of the end of September 2019, Vietnam’s industrial zones and economic zones had attracted nearly 3.7 million workers.

Vietnam has attracted a total of US$180 billion in foreign investment. Well-known companies such as Nike, Foxconn, Canon, LG, and Samsung have settled in Vietnam and opened factories.

Professor Huang Xingqiu from the Vietnam Institute of Guangxi Normal University said that the entry into force of the agreement will vigorously promote the development of Vietnam’s economy. At the same time, there are opportunities and challenges for Chinese-funded enterprises in Vietnam. Chinese companies can use Vietnam as a base to increase exports to the EU, but in turn they need to compete with EU goods that enter duty-free in the local Vietnamese market.

02 Promote Vietnam’s economic development

Vietnam and the EU officially launched free trade agreement negotiations in 2012 and reached in-principle agreement on the agreement in 2015. On June 30, 2019, the two sides signed an agreement in Hanoi, the capital of Vietnam. Since then, the EU Council approved the agreement at the end of March 2020, and the Vietnamese National Assembly also passed the agreement in June.

The bilateral trade relationship between Vietnam and the EU has developed rapidly. After entering the 21st century, the bilateral trade volume increased nearly 13 times, from US$4.1 billion in 2000 to US$4.1 billion in 2019. $56 billion. Among them, Vietnam’s exports increased nearly 14 times, from US$2.8 billion in 2000 to US$41 billion in 2019.

Currently, the EU is second only to Vietnam after the United States.� Covers a number of issues, including:

Trade in goods (including general provisions and market opening commitments), rules of origin, customs and trade facilitation, quarantine and food safety (SPS) measures , Technical Barriers to Trade (TBT), Trade in Services (including general regulations and market opening commitments), Investment, Trade Remedies, Competition, State-owned Enterprises, Government Procurement, Intellectual Property Rights, Trade and Sustainable Development, Cooperation and Capacity Building, Legal-Institutional .

According to the commitment, after the agreement comes into effect, the EU will eliminate import tariffs on 85.6% of Vietnamese goods tariff lines, equivalent to 70.3% of Vietnam’s exports to the EU. Then after 7 years, the EU will eliminate import tariffs on 99.2% of tariff lines importing goods from Vietnam, equivalent to 99.7% of all Vietnamese exports. For the remaining 0.3% of Vietnam’s exports, the EU has imposed tariff quotas and an import quota of 0%.

In order to implement the Notice No. 11/2020/TT-BCT of the Ministry of Finance of Vietnam, the Ministry of Industry and Trade of Vietnam provides the following guidance on the application of certificate of origin for EVFTA:

1. According to Article 19, Point 2a, Notice No. 11/2020/TT-BCT of the Ministry of Finance of Vietnam, anyone authorized by the Ministry of Industry and Trade of Vietnam can issue a certificate of origin Institutions and organizations (C/O): can be declared at ecosys.gov.vn. For goods worth more than 6,000 euros, these authorized institutions and organizations will issue the EU-Vietnam FTA special certificate of origin format – EUR.1.

2. According to Article 19, Point 2, b, of Notice No. 11/2020/TT-BCT of the Ministry of Finance of Vietnam, for enterprises that declare the origin of goods on their own, : Declarations can be made on ecosys.gov.vn, allowing any exporter to issue a self-issued declaration of origin for goods worth up to 6,000 euros. Documents uploaded by export enterprises to self-certify the origin of export goods and documents related to export goods should comply with the provisions of Article 25, Paragraph 6 of Notice No. 11/2020/TT-BCT of the Ministry of Finance of Vietnam.

3. If an export trader exports goods to the UK, the agency or organization that issued the certificate of origin form EUR.1 needs to instruct the export trader to submit it in accordance with the certificate of origin EUR.1 format. Declaration materials or issue self-certification document of origin. Provide relevant information in accordance with the content mentioned in Article 1 and Article 2 of this official document. This official document is valid until December 31, 2020. </p

This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.tradetextile.com/archives/34302

Author: clsrich

 
Back to top
Home
News
Product
Application
Search