The Regional Comprehensive Economic Partnership (RCEP) was officially signed recently with the participation of 15 members, creating a market of 2.2 billion people, equivalent to 26,200 billion USD, creating largest free trade area in the world. Thanks to its commitment to open markets for goods, services and investments, rules of origin in value within the RCEP Agreement geographic area, and trade facilitation measures, the agreement is expected to provide opportunities to for the textile and garment industry to boost exports, forming a supply chain. It can be said that the RCEP agreement is expected to expand the export market for the textile and garment industry in Vietnam.

But since the Regional Comprehensive Economic Partnership (RCEP) was signed, the textile business community has received 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.

Sharing about the impact of the RCEP Agreement on Vietnam's textile and garment industry, Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas), said that this Agreement will bring many opportunities for the textile industry in Vietnam. Male. Especially, unlike other agreements, in the RCEP Agreement, the rule of origin is a great advantage for Vietnamese enterprises.

More specifically, the RCEP Agreement will solve a number of major problems for textile and garment enterprises when China starts to import Vietnam's textile and garment products, opening opportunities for this billion-dollar market. Besides, Japan is also a potential market. Previously, garment products in this market had to prove that the raw materials originated from ASEAN and Japan, while Vietnam imported most of the raw materials in this industry from China. Now with the RCEP Agreement, Vietnamese garments made from Chinese raw materials are also enjoying preferential tariffs when exported to the Japanese market.

Concerns of enterprises

However, in the opposite direction, many businesses are quite concerned when materials from China with cheap prices will flow into the country. Representative of Thanh Cong Textile and Garment Company, Mr. Tran Nhu Tung, Deputy General Director of Thanh Cong Textile - Investment - Trade Joint Stock Company, said that before the RCEP Agreement, Vietnam was heavily dependent on supply. raw materials from China, with much cheaper prices than other markets. That means competition has been difficult for a long time.

Currently, the RCEP Agreement has officially been signed, raw materials imported from China will be facilitated in tariffs when entering Vietnam, the price will continue to be more competitive. This makes many enterprises producing raw materials and auxiliary materials in the country face difficulties. Of course, enterprises that export and use more raw materials from China will have an advantage, because raw materials from China will still be accepted.

"In addition to the above advantages, the textile and garment industry will face a number of challenges that are not small". 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 Whether. Now joining RCEP means that China will also receive tax reduction, making their products more competitive.

Solution

To overcome these challenges, Mr. Vu Duc Giang said that we need to soon plan industrial zones with wastewater treatment, to 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. “The Government assigns the textile and garment industry to have 30 brands exported to the world by the year 2030 with Vietnamese brands and trademarks. However, if the designer does not have the raw materials to express his ability to think and devote himself to the fashion industry, there will be a lack of motivation for competition and development ”- Mr. Giang acknowledged.

VITAS has proposed to the Government to soon build a solution on the strategy of textiles 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.