Vietnam's participation in new-generation free trade agreements (FTAs) is anticipated to provide fresh impetus for greater co-operation in the fashion industry with the Netherlands, according to insiders.

Since the initial enforcement of the EU-Vietnam Free Trade Agreement (EVFTA), there have been plenty of positive signs that international trade between the country and the EU will be boosted, with Vietnamese fashion products witnessing bright prospects for making inroads into the demanding European market.

Currently several local businesses operating in the fashion industry have restructured their operations, upgraded infrastructure, and prepared raw material sources to meet the commitments set forth by the trade deal.

Le Xuan Duong, head of Trade Promotion and Policy Department under the Vietnam Leather, Footwear and Handbag Association (LEFASO), said Vietnam represents the third largest manufacturer and second largest footwear exporter globally.

The country has exported shoes and handbags to roughly 20 EU member countries, of which the Netherlands makes up the third largest importer.

The Netherlands has developed into Vietnam's leading trade partner in Europe over recent years, with trade turnover increasing steadily. Following the implementation of the EVFTA, there is set to be robust growth in trade activities between both sides, particularly in the fashion industry.

Iwan Rutjens, first secretary of Economic and Commercial Affairs at the Dutch Embassy to Vietnam, said priority has been given to moving forward joint relations in economic, trade, and investment activities.

He added that by utilising expertise in logistics and developed infrastructure, the Netherlands has received a large number of Vietnamese exports to the EU market through the port of Rotterdam, noting that trade exchanges between the EU and the nation are anticipated to increase in near future.

To take advantage of incentives from the EVFTA, an online trade conference was held in November in order to introduce fashion products from both Vietnamese and Dutch businesses.

The event has paved the way for co-operation to occur between the Vietnam Trade Promotion Agency (Vietrade) and Modint, the Dutch trade association for fashion, textiles, and carpets, along with other enterprises in the related field.

Le Hoang Tai, deputy director of Vietrade, expressed his hope that more trade promotion activities will be organised between Vietrade and Modint. According to Tai, to take full advantage of the EVFTA in the fashion industry, firms from both countries must obey the commitments within the trade deal, with their products meeting the rules of origin.

Concurring with this viewpoint, Rutjens underscored the importance of making the most of Dutch expertise and technological innovation to boost the competitiveness of domestic firms, thereby bringing mutual benefits to both sides.

He also pointed out that the FTA is expected to encourage increasing numbers of Dutch fashion enterprises to develop a presence within Vietnam whilst helping local companies to make further inroads into the Dutch market.

Guido Van Roy, managing director of the Dutch Business Association in Vietnam, said the association would provide fashion businesses from both sides with relevant market information and business conditions in the Vietnamese market to strengthen connectivity among them.

Source: Customs News

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