Textile and footwear enterprises urged to capitalize on opportunities from FTAs

Thursday, November 26, 2020  11:08

Prime Minister Nguyen Xuan Phuc hails the textile and garment industry's efforts in coping with the impact of the COVID-19 pandemic

VOV.VN - Prime Minister Nguyen Xuan Phuc asked local textile-garment and footwear enterprises to take full advantage of free trade agreements (FTAs) during a working session with the sectors’ representatives in Hanoi on November 23.

According to representatives from the textile and apparel sector, there was not much decrease in textile and garment exports thanks to the nation's effective COVID-19 containment efforts, thereby creating confidence for importers.

They also expressed their elation following the nation's signing of a range of FTAs as a way of helping businesses get direct benefits from the tax rate reduction of 0%. This will give a great boos to the development of the local garment industry, they noted.

According to the Vietnam National Textile and Garment Group, by the end of 2020, the total global textile import turnover is anticipated to drop by 20% to roughly US$600 billion over last year.

The textile and garment industry is forecast to reach approximately US$33.5-34 billion in this year's export turnover.

In his remarks, PM Phuc asked the textile-garment and footwear sectors to accelerate the building of Vietnamese brands and supply chain linkages, and develop supporting industries.

It is imperative to boost reforms to improve corporate governance efficiency in the new situation and promote digital transformation in the operational management of textile and apparel enterprises as a mean of making the effective use of FTAs, including the newly signed Regional Comprehensive Economic Partnership (RCEP), the Government chief said.

The cabinet leader praised the sectors for their sustained efforts to strive for the best growth this year and 2021, while regaining its growth momentum as they did in 2019.

He said that the textile-garment and footwear industries play an important role, employing a large number of workers, up to 4.3 million. Their exports account for a large proportion of the total national export turnover, with last year’s their export earnings standing at US$62 billion, equivalent to 24% of the country's overall export turnover.

During the meeting, PM Phuc also underlined the need to ensure "green growth" in the development of the textile and apparel industry, application of a circular economy, and continued automation to increase the labour value.