The textile and garment factories must comply with ‘Rules of Origin’ if it has to benefit from the recently signed free trade agreements (FTAs) said Vietnam National Textile and Garment Group, or VINATEX.
Le Tien Truong, General Director, VINATEX said, “Vietnam needs to invest in fabric production to meet origin requirements while exporting to CPTPP and EVFTA countries.”
He also emphasized that it will not be relaxed for Vietnam as it will have to compete strongly with major fabric producers China and India especially with regard to design, quality and price.
He added that while investing in fabric production, production scale must be taken into consideration as Vietnam’s apparel sector uses less than 1 billion meters of woven and knitted fabric annually or 18% of global exports.
“If fabric production targeted only Viet Nam, production scale would be too small while investing in large-scale production,” said Truong.