Center for WTO & International Trade (WITC)

Handbook: Summary of FTA’s commitments for Textile and Garment Sector


Date: 2019 

By: WTO and International Trade Center – VCCI 

The textile and garment sector is one of the key export sectors in Vietnam. In 2018, the export of Vietnam textile and garment products increased by 13.85% compared to 2017, equivalent to US$36.2 billion, ranking third all over the world, after China and India.

The main export markets of Vietnam textile and garment products are the United States, the EU, Japan, and South Korea. Other markets, such as ASEAN and China, are having remarkable growth. Excepting the United States, Vietnam is now having or about to have free trade agreements (FTA) with almost all potential export markets of Vietnam textile and garment products.

By the end of 2019, Vietnam has had 12 FTAs in force (the latest the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – CPTPP, and ASEAN - Hong Kong, China Free Trade Agreement - AHKFTA), 01 signed FTA (Vietnam - EU Free Trade Agreement), and 03 FTAs under negotiation FTAs with a total of 57 trading partners in the world.

The key commitments of these FTAs are to eliminate tariffs for most goods, including textile and garment products, which offer Vietnamese textile and garment businesses the opportunities to enjoy preferential tax rates and fewer barriers when exporting to FTA partner markets. Thereby, Vietnamese products and enterprises could improve their competitiveness in the international market. Also, these FTAs creat opportunities for attracting investment, dominating domestic market share, reforming the industry conforming with international standards, and ensuring sustainable development.

As a part of WTO and International Trade Center – VCCI's Program of Consulting and Providing Information of Trade Integration for Vietnamese enterprises, Handbook: Summary of FTA’s commitments for Textile and Garment Sector was compiled aiming to provide Vietnamese textile and garment enterprises with the basic commitments of FTAs that Vietnam is or will implement. Thereby, Vietnamese enterprises can reap the most benefits from them.

The Handbook summarizes commitments on tariffs and rules of origin, and C/O forms relating to textile and garment products (HS codes from Sector 50 to Sector 63) in 13 FTAs that Vietnam has signed or completed negotiations and according to relevant information in FTAs under negotiation. Also, the Handbook proposes some notes and recommendations to Vietnamese textile and garment enterprises to take the most advantages of the mentioned FTAs.

The Handbook (in Vietnamese) is attached below: