Since the signing of the Regional Comprehensive Economic Partnership (RCEP), the textile business community has embraced this information with different perspectives. According to textile enterprises, this industry will benefit less than other sectors such as agriculture and fisheries, but this does not mean that RCEP does not bring new opportunities for textiles.

With many years of experience in the textile and garment industry, Mr. Vu Duc Giang - Chairman of Vietnam Textile and Apparel Association (VITAS) - assessed: RCEP will solve some big problems for textile enterprises. Specifically, we have a market of more than 2 billion people in the region of RCEP member countries, especially a large market in China. According to our data, China now accounts for about 10% of the total garment export value of the whole industry. In the last 5 years, China started to import textile and garment products from Vietnam, so we expect this Agreement will create a more open market for us in this billion-population country.

 
Outside of China, Japan is also a potential market. If previously, garment products entered this market, it was required to prove that the material originated from ASEAN and Japan. While Vietnam imports the majority of raw materials in this industry from China. Now with RCEP, Vietnamese garments made from Chinese materials are also enjoying preferential tariffs when exported to the Japanese market. In addition, RCEP makes it easy for businesses in this industry to exploit the benefits of existing agreements and promote regional production chains. Thus, RCEP will help harmonize commitments and provisions in the current ASEAN + 1 FTA, especially rules of origin and trade facilitation.

In particular, another great advantage from RCEP will create for the textile industry, pointed out by Mr. Giang, is the commercial solution of the RCEP Agreement. Accordingly, the RCEP will create a driving force for the development of textile technology, help shift the textile and garment structure of the countries in the region to the Vietnamese market and achieve the target of Vietnam's supply shortage.

Motivated by complete planning 

Besides the aforementioned advantages, the textile and garment industry will face a number of challenges. Mr. Pham Van Viet - Chairman of the Board of Directors of Viet Thang Jean Co., Ltd. - affirmed that we will have to compete more with textiles from China, which is unavoidable because this country has an inherent advantage in the material source. Now joining RCEP means that China will also receive tax reduction, making their products more competitive.

With this concern, Mr. Tran Nhu Tung, Deputy General Director of Thanh Cong Textile - Investment - Trading Joint Stock Company - pointed out: Since before this Agreement, Vietnam has largely depended on imported raw materials from china. The price of raw materials imported from this country is inherently lower than the raw materials produced by domestic enterprises, which means competition has been difficult for a long time.

To solve this challenge, Mr. Vu Duc Giang said that we need to soon plan industrial zones with wastewater treatment, and call for investment in factories for complete yarn - weaving - dyeing. In these areas, businesses will join together and develop more effectively. In addition, we also have to invest more strongly in the development of science and technology, namely building a design foundation, training quality human resources.

On the textile and garment strategy for the period 2030-2040. Accordingly, investment in industrial parks with wastewater treatment plants meeting environmental standards is aimed at creating incentives to take advantage of the RCEP Agreement as well as the agreements that Vietnam has signed.