Opportunities and challenges for garment and textile industry in 2017

According to the forecast of the Ministry of Industry and Trade, in 2017, apart from the Trans-Pacific Partnership Agreement (TPP), there are dozens of free trade agreements that bring more opportunities in export business for garment and textile enterprises in Vietnam.
Especially, Vietnam – EU Agreement is an important one with $200 billion per year. According to the schedule, 7 years after the FTA Vietnam-EU agreement (EVFTA) is effective (2025), 99% Vietnamese products are exempt from taxation when coming into EU market. On the other hand, it takes 10 years (2028) for 99% EU products to come to Vietnam without any taxation. This is considered as a significant opportunity for Vietnam garment and textile enterprises to export to EU market.
However, 2017 is the year to prepare for requirements of this agreement especially the fabric origin. Therefore, Vietnam needs to be well-prepared to take advantage of this agreement.
Other bilateral and multilateral trade agreements have inconsiderate impact on the industry in the coming time, for they only cover small markets. Still, they also bring opportunities for Le Stitches to gradually develop its export business.
In addition, the US economy tends to be positive growth and the consumption of this market is expected to be improved in comparison to 2016.