Textiles and garments account for 25-26% of export turnover but have not taken advantage of the benefits from EVFTA, CPTPP, and UKVFTA much.
According to Ms. Do Thi Quynh Tram - Deputy Director of the Department of Industry and Trade of Da Nang City, textile and garment is one of the manufacturing and export industries that contributes relatively large to the total export turnover of Da Nang (accounting for about 25-26%). In the city, there are currently about 30 textile and garment enterprises with direct import and export activities. About 10/30 enterprises have production - import and export activities with large value and relatively stable.
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| Direct discussion with business leaders about the ecosystem of utilizing new generation FTAs in the textile and garment sector in Da Nang City |
Textile and garment export turnover in 2023 in the city is estimated at 484 million USD, down 10.3% compared to 2022; the first 10 months of 2024 is estimated at 426 million USD (accounting for 26.7% of export turnover), up 3.4% over the same period in 2023.
Regarding the import-export market, the city's textile and garment enterprises have exported to more than 40 countries and territories. The main export items include: All kinds of clothing products; textile products account for about; textile raw materials (yarns) account for... Imported raw materials for sewing, textile, machinery and equipment...
Citing data from the Central Region Import-Export Management Department (Import-Export Department, Ministry of Industry and Trade), a representative of the Department of Industry and Trade of Da Nang City said that the situation of taking advantage of incentives from free trade agreements (FTAs) by enterprises in the Central region is quite positive, with some markets recording an increase in both the number of C/Os issued and export value.
However, according to the Deputy Director of the Department of Industry and Trade of Da Nang City, the number of textile and garment enterprises in the city with large import and export value is not much; most of them export according to processing orders, are assigned to import raw materials from China or other countries not on the list of countries enjoying incentives from the new generation free trade agreement, do not meet the criteria of origin of goods in the agreements, so they have not taken advantage of the CPTPP, EVFTA, UKVFTA agreements.
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| Mr. Ngo Chung Khanh - Deputy Director of Multilateral Trade Policy Department, Ministry of Industry and Trade |
“Through the Seminar, businesses will have more information about the ecosystem model, the benefits of participating in this model as well as exchange, actively discuss, and contribute ideas to build this model for the Ministry of Industry and Trade to complete, provide a roadmap and steps to operate the ecosystem to take advantage of the textile and garment industry's FTA to implement in 2025,” said Ms. Do Thi Quynh Tram.
Quickly put the FTA Ecosystem into practice to effectively support businesses
Introducing the Ecosystem for taking advantage of FTAs in the textile and garment sector, Mr. Ngo Chung Khanh - Deputy Director of the Department of Multilateral Trade Policy (Ministry of Industry and Trade) said that the five main problems that the Vietnamese textile and garment industry is facing are: the supply of raw materials is still largely dependent on imports; orders and markets are unstable, mainly processed goods; lack of capital, difficulty in accessing credit; lack of information and policies of the import market; and failure to build a brand . "The Ecosystem for taking advantage of FTAs in the textile and garment sector will connect central management agencies; local management agencies; textile and garment enterprises/business associations, credit institutions; textile and garment raw material suppliers to form an ecosystem to support businesses in optimizing benefits from FTAs. Especially for the textile and garment industry, it is to connect textile and garment enterprises with raw material suppliers", said Mr. Ngo Chung Khanh.
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| Ms. Do Thi Quynh Tram - Deputy Director of Department of Industry and Trade of Da Nang City |
At the seminar, textile and garment enterprises (both domestic and FDI enterprises) in Da Nang City raised many difficulties in production activities, especially difficulties in input materials that are currently heavily dependent on imports. Enterprises and representatives of functional agencies simultaneously supported and hoped that the ecosystem for utilizing FTAs would soon be implemented to help enterprises overcome difficulties in this regard as well as support enterprises to take advantage of incentives from FTAs such as EVFTA, CPTPP, UKVFTA most effectively.
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| Businesses give comments at the seminar |
Mr. Huynh Ngoc Anh Khoa - Representative of Hoa Tho Textile and Garment Joint Stock Company said that the unit is ready to participate in the ecosystem to take advantage of the new generation FTA and hopes to complete and put the ecosystem into operation as soon as possible, in which textile and garment enterprises hope to solve the problem of input materials through connections from the ecosystem.
“ The Department of Industry and Trade of Da Nang City hopes that the construction of an ecosystem to take advantage of the FTA will soon be completed and implemented in practice. The Department of Industry and Trade of Da Nang City is ready to participate and accompany the Department of Multilateral Trade Policy to best support businesses. And importantly, there needs to be serious participation and active interaction from businesses - the main subjects towards the support of the ecosystem to take advantage of the FTA” , said Deputy Director of the Department of Industry and Trade of Da Nang City Do Thi Quynh Tram.
| The seminar directly discussed with business leaders about the ecosystem to take advantage of the new generation of FTAs in the textile and garment sector in Da Nang City, organized by the Department of Multilateral Trade Policy - Ministry of Industry and Trade in coordination with the Department of Industry and Trade of Da Nang City, aimed at collecting comments from units related to the textile and garment industry such as enterprises, business associations in the textile and garment sector, textile and garment materials, logistics, banks, etc. to complete the construction of an ecosystem to take advantage of the new generation of FTAs in the textile and garment sector. Thereby, supporting textile and garment enterprises to effectively take advantage of the benefits from free trade agreements (FTAs), especially new generation FTAs such as EVFTA, CPTPP, UKVFTA, etc. |
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