Due to the impact of the COVID-19 pandemic, Vietnamís
garment and textile export turnover in the last six months
reached a mere $12.8 billion, of which, exports to the
European market exceeded $2 billion, according to the
ministry of industry and trade (MOIT). Last year, the export
turnover of such items was around $39 billion, of which, the
European market contributed more than $8 billion.
The European Union (EU) is the third-largest garment and
textile importer of Vietnam after the United States and
High tax rates and high labour costs in the past two years
have weakened the competitive advantage of Vietnam's textile
and garment products compared to those of Myanmar, Laos,
Cambodia, India, and Bangladesh, according to the Vietnam
Textile and Apparel Association (VITAS).
Another problem of the sector is that many enterprises
exporting to the EU are small and medium enterprises with
limited resources and their production processes do not meet
European standards. They have not invested adequately in
researching and developing products, have not effectively
exploited the intellectual property assets and trademarks,
according to a report in Vietnamese newspaper.
They also lack human resources with foreign language skills
and professional trade negotiation skills to carry out
export activities to the EU market.