|Garment products are manufactured at Norfolk in Ha Nam Province's Dong Van 1 Industrial Park. Viet Nam's exports of garment and textile products to the European market remains higher than Cambodia's. — VNA/VNS Photo Vu Sinh
HA NOI (VNS)— The Viet Nam Textile and Apparel Association (Vitas) denied the information that Cambodia had surpassed Viet Nam in garment and textile exports to the European Union (EU).
Recently, several local newspapers reported that Cambodia surpassed Viet Nam to become the fifth largest exporter of garment and textile products to the EU.
This was incorrect, the association said, and added that this was caused by a misunderstanding about statistics of the EU's imports of garment products that the association published recently.
The figure was about imports of garment products of the EU in 2015 (code HS61 and HS62) but was mistranslated that it included imports of both textile and garments products (with code ranging from HS50 to HS63).
Vitas said that Viet Nam's exports of garment and textile products of Viet Nam in 2014 and 2015 was 2.53 billion euros (USVND61,304 billion) and 3.13 billion euros, respectively. Cambodia's figures were 2.26 billion euros and 2.97 billion euros, respectively.
The garment and textile export revenue of Viet Nam remained higher than Cambodia, although the latter enjoyed a zero tax rate following the Everything But Arms, part of the EU Generalised System of Preferences while the tax rate on Viet Nam's exports was 9.6 per cent.
Vitas said that in the short-term, garment and textile exports of Cambodia to the EU might move closer to Viet Nam's thanks to a more preferential tax rate.
However, in the medium term, Viet Nam's garment and textile exports to the EU were expected to widen the gap with Cambodia, given that a trade deal between Viet Nam and the EU would soon come into effect.
However, experts urged the garment and textile industry to improve competitiveness to take advantage of opportunities arising from the Viet Nam – EU Free Trade Agreement. — VNS