The current situation and solutions to promote vietnam's export of textile and garment to eu market when joining EVFTA

Nội dung text: The current situation and solutions to promote vietnam's export of textile and garment to eu market when joining EVFTA

1. THE CURRENT SITUATION AND SOLUTIONS TO PROMOTE VIETNAM'S EXPORT OF TEXTILE AND GARMENT TO EU MARKET WHEN JOINING EVFTA Assoc. Prof. Nguyen Van Tuan1 Abstract: The article focuses on analyzing the current situation of Vietnam's textile and garment exports to the EU market in recent times. The results show that in addition to these achievements, there are also certain limitations and shortcomings. In order to promote more exports of Vietnamese textiles and garments to this extremely attractive market, the article proposes a system of solutions both at the macro and micro scale to overcome the existing limitations, using opportunities, coping with difficulties and challenges when the EVFTA Agreement brings to further increase our country's textile and garment exports to the European Union market. Keywords: Opportunities, challenges, exports, textiles, Free Trade Agreement between Vietnam and the European Union. 1. CURRENT SITUATION OF VIETNAM'S TEXTILE AND GARMENT EXPORTS TO THE EU IN RECENT YEARS 1.1. Current situation of Vietnam's textile and garment export turnover and proportion to the EU market Table 1. Export turnover and proportion of export turnover of Vietnamese textiles and garments to the EU market Unit: billion USD Textile and garment export Proportion of textile exports to the Total textile export Year turnover of Vietnam to the EU in the total textile export turnover of Vietnam EU turnover of Vietnam 2010 1.88 11.21 16.77% 2011 2.52 14.04 17.95% 2012 2.41 15.09 15.97% 2013 2.73 17.95 15.21% 2014 3.34 20.95 15.94% 2015 3.47 22.81 15.21% 2016 3.51 23.84 14.72% 2017 3.73 26.04 14.32% 2018 4.1 30.49 13.45% 2019 4.26 32.85 13.38% Source: Consolidate data from the General Statistics Office 1 School of International Economics and Trade – National Economics University. 587
2. From the above data table shows that, in the past 10 years, Vietnam's textile and garment exports to the EU market have continuously increased over the years (except for 2012, to the impact of the financial crisis and crisis public debt crisis in Europe) with an average growth rate of 10.25%. In addition, the data also shows that compared to 2010 (when the Prime Minister of Vietnam and the EU President agreed to start the EVFTA negotiation), textile export turnover in 2019 (7 years after announced the launch of negotiations for the EVFTA Agreement in 2012) has increased by 2.38 billion USD, equivalent to 2.27 times the figure in 2010. The above figures show that the export of textiles and clothing by Vietnam to the EU is showing positive signs, developing over the years, with the current growth trend, forecasted in the future, Vietnam's textile and garment export turnover to the EU will continue to increase. On the other hand, the above data table also shows that: The proportion of textile and garment exports in the EU region tends to decrease gradually due to the higher growth rate of Vietnam's total textile exports to the world with the growth rate of this sector's turn for the EU market. This shows that the export for this industry in the EU market is shrinking compared to other regions. However, with an average rate of about 15% each year, the EU is considered as one of the largest and most important markets for Vietnam's textile and garment exports. Currently, the EU is Vietnam's second largest textile export market (after the US). Regarding the proportion of textile and garment exports in the structure of Vietnam's total merchandise exports to the EU: Table 2. Share of textile and garment exports in Vietnam's total merchandise exports to the EU in the period 2010–2019 Unit: billion USD Textile and garment Total exports of goods Proportion of textile and garment Year export turnover of from Vietnam to the exports in Vietnam's merchandise Vietnam to the EU EU exports to the EU 2010 1.88 11.39 16.51% 2011 2.52 16.55 15.23% 2012 2.41 20.30 11.87% 2013 2.73 24.33 11.22% 2014 3.34 27.90 11.97% 2015 3.47 30.93 11.22% 2016 3.51 34.01 10.32% 2017 3.73 38.34 9.73% 2018 4.1 41.95 9.77% 2019 4.26 41.55 10.25% Source: Consolidate data from the General Statistics Office In the structure of Vietnam's merchandise exports to the EU, the textile and garment export turnover in 10 years (2010 – 2019) fluctuated unstable and tended to decrease. This trend shows that the growth rate of textile exports is slower than the growth rate of other industries. However, with an average rate of 11.8% per year, textiles and garments are still considered one of the key products, playing an important role in enhancing the export value of goods to the EU. 588
3. 1.2. Current situation of Vietnam's textile and garment export market to the EU Up to now, the EU is the largest textile and garment import market in the world with the annual textile and garment import scale of more than $ 250 billion and the total garment demand growing on average 3% per year. The total import demand for textile and apparel of the EU recorded in 2018 and 2019 was 279 280 million USD and 271 460 million USD, respectively. Vietnam is currently in the top 10 countries with the largest share of textile and garment exports to the EU (China, Turkey and Bangladesh account for nearly 36% of the total import turnover). However, Vietnam's textile and garment exports on the EU market only account for 2–3% of the total EU textile and garment import turnover. This figure shows that Vietnam has a high room to increase textile exports to this market. China’s textile and garment exports – the largest exporter of textiles and garments in the EU market – are on a downward trend and shifting their focus to value–added production. This increases more opportunities for Vietnam to exploit the potential EU area. Table 3. Textile and garment export turnover of Vietnam to some major EU markets in the period 2010–2019 Unit: million USD Year Export turnover of Export turnover Textile export Export turnover of Textile and textiles and of textiles and turnover to textiles and garments garment garments to garments to France to the Netherlands exports to Germany Spain Italy 2010 445.88 337.34 146.33 167.45 117.66 2011 601.15 401.30 201.99 238.45 154.11 2012 558.63 408.97 174.17 246.58 138.02 2013 651.36 533.89 178.51 253.36 150.14 2014 758.66 697.52 177.72 388.94 193.76 2015 698.21 521.03 353.86 513.67 209,20 2016 725.88 441.90 435.87 537.89 210.02 2017 736.71 449.40 526.14 601.17 236.78 2018 797.76 464.29 615.18 615.46 263.97 2019 808,12 433.21 602.44 691.24 294.99 Source: Compiled from data of the General Department of Customs Table 3 shows the export turnover to some of Vietnam's largest textile and garment import markets in the EU. The above figures show that Vietnam's textile and garment export turnover to these countries tends to increase, especially in France and the Netherlands, with data in 2019 more than 4 times compared to figures in 2010. In which, accounting for the largest proportion is Germany with more than 800 million USD of textiles and garments exported to this market. Germany is the fifth largest economy in the world (in terms of GDP) and the first in Europe. Germany exports a lot and imports a lot and ranks second in the world in terms of imports. This is a densely populated market with high income, the people's garment consumption is very large, they pay special attention to the quality and fashion of this product. These are extremely favorable characteristics for Vietnam to be able to exploit the potential market of Germany for the export of textiles in our country. In addition, France is also a promising market for textile and garment exports. France is the 18th most importer in the world (2014), the demand for imported goods (including garment) of France is continuously increasing, France is also 589
4. the gateway for Vietnamese products to export. to other countries in the EU. Regarding Vietnamese products in the French market, the structure of Vietnam's garment exports is suitable for the middle and low market segments in France, textile and garment products still have a good growth. However, Vietnamese textile and garment products only account for a small share of the total market demand for this commodity, so Vietnamese enterprises have more room to exploit this market. Besides Germany and France, there are a few other countries that are a potential and promising market for Vietnam to boost exports to the EU region such as the Netherlands, Italy or Spain. 2. THESE LIMITATIONS EXIST AND CHALLENGE FOR WRITING STRONG EXPORT GOODS TEXTILE WHEN VIETNAM ENGAGED IN EVFTA 2.1. Current limitations Firstly, processing method for export is mainly: The strength of Vietnam's garment is in the sewing stage. However, the main mode of outsourcing for export is 70%; method of buying raw materials, semi–finished products according to the customer's designation or self– exploiting (FOB I and FOB II) about 20%; the method including the product design (ODM) is 9% and modes of production and marketing direct sales at trade centers abroad (OBM) only accounted for 1%. Therefore, the low efficiency and the added value of textiles and clothing for export only account for over 50%. With the simple form of outsourcing making up the majority, the added value created by the textile and garment industry is not high, but it uses a lot of workers. cause labor intensive. Second, production costs are still high, making it difficult for product prices to compete with products of other countries: The minimum wage continues to increase about 5.1–5.7% in 2020, from 2008 the minimum wage will increase to 12 times, while FDI companies and factories are established in Vietnam. Then, the competition for wages becomes even more fierce, which can cause wage inflation to rise and increase costs for businesses. Enterprises grow their exports based on outsourcing production and increase the number of labors produced, but these two factors are not sustainable, especially for workers, despite wages for textiles and garments workers are still low, but it tends to increase. If enterprises increase production scale by increasing labor, costs will not decrease much and if not balanced and calculated carefully, it can also have the opposite effect of increasing production costs. In addition to labor factors, other fixed costs such as costs for factories, factories, equipment costs and technology also contribute to making product prices difficult to compete. In addition, Vietnam's textile and garment enterprises are mostly small and medium enterprises, lack of resources, so their ability to invest in technology to increase output or product value is low, and the ability to increase scale to reduce costs is also limited, so production costs remain high. Third, the application of technology in the textile and garment manufacturing industry still has many limitations: According to the Institute of Strategic Studies, Industry and Trade Policy (Ministry of Industry and Trade), in 2014, product design, production management using high–tech equipment, using software only accounted for about 20%, while medium technology accounts for 70% and weak technology accounts for 10%. In terms of weaving technology, most weaving equipment is average while knitting is only at medium and low levels. The above figures show that, although the level of technology and equipment used in textile production has been improved, in order to improve the output and quality of textile products for export. the possibility is still low. 590
5. Fourth, the supporting industries for textiles and garments still face many difficulties: In 2018, the textile and garment industry imported a total of 3 billion USD for cotton, 2 billion USD for yarn, 2.6 billion USD for accessories. In the total of 36.2 billion USD exported, there are raw materials, accessories, fabrics, 1.6 billion USD, and 1.2 billion USD. The data shows that fabric production is very rare, only meeting 20–30% of demand for fabric. For the fiber industry, the enterprises mainly produce synthetic fibers, accounting for about 61.7% of total yarn production. But in addition to knitted yarns used for domestic textile production, other fibers are mainly exported due to limited finishing of dyeing. Likewise, Vietnam's garment industry currently has an output of about 2.3 billion m2/year, meeting about 25% of the domestic market demand. Domestically produced fabrics are largely used to produce medium and low–quality clothing; not meeting the requirements of export garment manufacturing enterprises. According to the Vietnam Textile Research Institute, the technology level in Vietnam's textile and dyeing industry is 15–20 years slower than other countries in the region. Because the dyeing and finishing stages in Vietnam are still underdeveloped, businesses must export undyed and finished carpentry, and import the treated fabric for use. The textile and garment sub–manufacturing industry also has a similar situation, only meeting 50% of the demand. Buttons, mex and zippers must be imported in large quantity and mainly from China. The reason that the textile and garment industry has not developed comprehensively is that in some developed countries, supporting industries are often one step ahead or go hand in hand with the main industry. But in Vietnam, the supporting industry for textiles and garments is very poor and lags because in the past, textile enterprises mainly served domestic demand. Furthermore, investment in supporting industries is a very difficult stage, including technology, capital and human resources. Meanwhile, in Vietnam, the finishing process of weaving and dyeing has not been developed due to the connection with wastewater treatment. Projects related to weaving, dyeing and finishing are not welcomed by the localities. Besides, the investment in wastewater treatment system in textile and dyeing is very expensive, so businesses are not interested in investing in this field. You can refer to an example from an expert in the textile and garment industry to see how expensive it is to invest in the textile and dyeing sector: If you invest in a job position of a garment worker, you only need to invest USD3,000 (human and technology), but if investing in the position of a yarn or textile worker, it costs USD200,000. This is indeed a difficult problem for small and medium enterprises. From the above figures, it can be seen why up to now, the number of enterprises investing in the textile and garment industry is still relatively modest. Although a number of factories such as Nha Trang Garment Joint Stock Company, Viet Tien Garment Company, Industrial Fabric Textile Company and private companies have produced many kinds of accessories such as zippers pads, buttons, etc., but the output is also very small, only meeting about 20–25% of the industry's demand. Establishing a sewing factory with a scale of 1000 workers requires a capital of VND100 billion, establishing a yarn factory requires a minimum capital of VND300 billion, while establishing a textile factory requires at least VND600 billion. At the same time, customers' tastes tend to change constantly, investing in weaving and dyeing machinery is very quickly outdated, if it cannot be produced on a large scale, it will cause great difficulties for the business. Vietnam Textile and Garment Industry in investment. Those are the difficulties that make investment in garment supporting industries become bottlenecks that do not help the textile and garment industry to develop. Fifth, labor is not highly qualified and labor productivity is low. By the end of 2017, there were 7,000 textiles enterprises, with the number of employees is approximately 2.5 million, of which 80% are women workers. What is worrying is the percentage of workers who have been trained in the textile enterprises Vietnam currently has only reached 25%, the remaining 75% of workers in this sector are not trained (mostly just graduated junior high school, high 591
6. school) or trained for less than 3 months. Currently, workers in the textile and garment industry are mainly self–taught and self–trained in the factory. Meanwhile, it is forecasted that by 2025, the Vietnam Textile and Garment industry will need about 130,000 more workers with university and college degrees. This number will increase to over 210,000 employees by 2030. Regarding the level of labor in garment and textile is still low, unskilled labor makes up 76%; primary and secondary professional accounts for 17.3%; College, university and postgraduate account for 6.8%. The above figures show that the majority of employees lack both the hard skills and the soft skills needed not only for their current jobs but also for jobs that require high skills in Industry 4.0. For jobs such as the ability to operate complex digital machines, programming engineering, robot control, human–machine communication, data analysis, etc., a good foundation of thinking is required, methodically trained over the years, so untrained unskilled workers can hardly undertake. The more ominous thing, in many businesses, managers, technicians and technologies are selected and prompted from advanced workers with good skills but not yet trained in management skills, children. people, especially the ability to apply technology in production, make the human resource of the garment industry weak. The world industry will be developing more and more and more advanced, in Vietnam, the closest industry is Industry 4.0, but to apply these technologies in garment enterprises is difficult because the qualifications of the labor force are weak, insufficient human resources capable and ability to operate new machine. Labor productivity of the manufacturing sector Vietnam is very low, reaching only 2.4 index; while other major textile producing countries such as China and Indonesia hit the indexes of 6.9 and 5.2, respectively. These require businesses to have plans and solution to train, increase skill levels of workers to create productivity level higher than suitable for the use of new technology better. 2.2. Challenges for exporting textiles when Vietnam joined the EVFTA Dated 12.02.2020 The European Parliament has voted to approve the Free Trade Agreement between Vietnam and the European Union (EVFTA), dated 08.01.2020 Agreement officially takes effect, this is the opportunities for Vietnam to expand the market, improve product quality, increase market share in the European market and are a condition for Vietnam to really improve its competitiveness. The EVFTA Agreement is expected to promote trade, investment and economic growth as well as further strengthen mutually beneficial links between Vietnam and the European Union. EVFTA will help Vietnam can restructure its import and export markets in a more balanced direction to improve the autonomy of the economy. Many economic sectors are considered to benefit from EVFTA, in which textiles and garments are one of the sectors that will benefit the most when EVFTA takes effect. The opportunities i bring to textile export must include: Preferential tariffs with the export tax rate decreasing to 0%, helping to improve the competitiveness for textiles and garments; the market expansion, development of production, supply chain development for agencies to apparel; enhancing competitiveness and create more opportunities to attract capital foreign direct investment (FDI) as well as to create conditions for the textile industry sustainable development as part increase the localization rate; promote institutional reform, improve business environment, create a healthier and more justified competitive environment; promote improvement of science and technology, apply modern advanced science and technology; creating a driving force for social development, on the basis of increasing job opportunities, reducing the unemployment rate. However, in addition to the above opportunities, the country's textile and apparel export industry also faces many difficulties and challenges to overcome in order to benefit from this Agreement, which brings: 592
7. One is: The requirement on the rules of origin of textiles and garments is very strict, leading to the increase in localization of textile products. Requiring rules of origin of EVFTA very high and strict, without an appropriate policy to curb heavily dependent on raw materials textiles of our country, not many goods of Vietnam hope to enjoy a preferential tax rate under EVFTA. The "fabric onwards" rule under the Agreement means that Vietnam's textiles and garments must satisfy two conditions: that the fabric used to make the finished product must originate from Vietnam or the EU and the cutting and tailoring must be done in either Vietnamese or EU firms. However, the EVFTA agreement also includes a flexible commitment to cumulative rules of origin. That means that in case if the fabric is now used originating from countries with FTAs with the EU and Vietnam or Korea, the product of the enterprise is also considered the origin valid for enjoyment tax incentives under the EVFTA Agreement (Viet Nga, 2019). Although the rules of origin in EVFTA are looser than the CPTPP, they still pose many challenges for Vietnam's textile and garment enterprises. The biggest shortcoming of Vietnam's garment and textile in the supply chain is the supply of raw materials and input materials, which currently only meet less than 1% of the cotton demand, 30% of the fiber demand. The reason is that most Vietnamese enterprises are still only doing the cutting sewing process, not producing fabrics and fibers. Therefore, the supply of raw materials for the textile and garment industry is a challenge not only for the textile industry but also a challenge to take advantage of the opportunities that bring, if the rules of origin are not ensured, Vietnamese textiles Men will not be entitled to the privileges. Despite many efforts and efforts, about 90% of our country's textile and apparel materials are imported from countries that are not members of the agreement and are not given incentives to combine in the agreement. This is really a difficult challenge for the textile and garment export enterprises of our country. According to data from the General Statistics Office, the value of input materials in our country's textile and apparel industry accounts for 67.1%, and most of these materials are imported from China and Taiwan, every year in Vietnam. imported about USD 11.52 billion of raw materials for textile, garment, leather, and shoes from China, accounting for 48% of the import value, the rest is from Korea, Taiwan, the US Specifically, Vietnam has to import over 80% of fabric for export garment, of which about 50% from China, 18% from Korea, 15% from Taiwan. These are mainly countries that do not have an FTA with the EU, so we will not enjoy tax incentives under EVFTA's regulations. Moreover, the dependence on imported raw materials also affects orders of time, quality and economic efficiency. It can be said that the biggest pressure of the textile and garment industry is not creating a source of raw materials for production. This requirement requires the textile industry to invest in the development of the yarn and fabric industry and there must be the linkage between the two industries. Second, pressure from competitors between foreign invested enterprises (FDI) and domestic enterprises With the strict requirements of EVFTA on the principle of fabric onwards, the production of textile materials in Vietnam will be an attractive investment attraction. This helps to solve the origin problem, but it will also be a highly competitive sector, in which domestic firms will be under pressure from FDI firms. With the benefits gained from the Agreement, especially the tariff preferences, many foreign investors will invest in the textile and garment industry. Since then, the domestic textile products will be fierce competition with products of FDI, particularly price competition both and quality textiles. Most of the competitors come from countries that are strong in competitiveness, both in size, capital, and business experience, they have advantages in both finance, technology and market. According to Mr. Le Tien Truong (2020) – General Director of Vinatex: “In order to meet the rules of origin in EVFTA, Vietnam needs to invest in fabric production. However, when investing, businesses need to consider the competitiveness of models, quality, delivery time, price with large 593
8. manufacturers such as China (accounting for 54% of global fabric), India (accounting for 20%). Therefore, enterprises should only invest in making fabrics when there is an assurance from the leading partner of the supply chain (who has a decisive role in the design, output, distribution channel), with output for the product., instead of spreading investment, because we cannot compete with the price of imported fabric from the aforementioned major manufacturers ” At the same time, the textile and garment industry are also facing increasing competition for human resources. The wave of factory relocation to Vietnam to avoid taxes is pushing labor costs more and more expensive, affecting the profitability of businesses, the workforce that used to be an advantage of Vietnam's textile and garment industry. is also becoming a challenge. Previously, labor in the textile and garment sector of Vietnam was highly appreciated in three points: ingenuity, cost and quantity. But nowadays, many steps require dexterity that machines can do, labor costs in Vietnam are no longer cheap compared to some other countries, the additional labor force decreases due to the aging population. These are points of concern. According to Mr. Vu Duc Giang, Chairman of Vietnam Textile and Apparel Association (VITAS, 2020): "With the new regulations, the costs for Vietnam's garment workers are very high. Their average salary is USD300 – 450/ month/person depending on the region, much higher salary of around USD150/ month/person of labor in Burma, Bangladesh Besides, the training for the textile industry is still very weak. Textiles garment Vietnam is ranked third after China, India, but some countries are chasing closely behind, if Vietnam does not set a good strategy, it would be difficult to access the market 28 EU countries. " As Therefore, the competitive advantage thanks to the abundant labor force, the low cost of labor in Vietnam is currently decreasing. Compared with other garment exporters in the region, Vietnamese enterprises are limited. in terms of outdated machinery, equipment and technology, not to mention the relatively low labor productivity This disadvantage can no longer be compensated only by the low–cost workforce. industry design d Vietnam's luck is still thin and lacking when joining EVFTA, so the pressure from competitors with textile enterprises is very great. Friable i Therefore, Vietnam enterprises must prepare yourself a powerful resource of quality competitive products, the design staff of administrators Third, a pressure to the high requirements on the technologies more advanced technologies in manufacturing modern business textile sector. When joining the EVFTA Agreement with the textile and garment industry has not really developed, the technological level is outdated, the labor productivity is low, it is necessary to restructure the textile industry and complete the supply chain. join the global textile supply chain. In order to do so, it is necessary to invest heavily in textile technology in order to apply modern advanced technologies. This will be a difficult and challenging problem for our country's textile and garment industry, because Vietnam has a not really developed textile industry, productivity is not high, technology is outdated. Furthermore, in order to ensure technical regulations, rules of origin, and environmental standards for textiles and clothing exports, technology requirements in textile production must be met. To do that, nothing but the strong investment more in technology, machinery and equipment advanced and modern, this is a challenge as well as conditions for the textile sector for sustainable development and enhancing get their own competitiveness. Fourth, requirements on environmental standards and environmental conditions of the importing countries The provisions of the EVFTA Agreement on the Environment are very strict and rigorous to promote reciprocity between trade and environmental policies, promote high–level environmental protection, and enforce Law on the environment. Many trade–related environmental issues and sectors have been included as binding obligations and enforceable by the Parties to the Agreement using economic instruments. In order to implement the environmental provisions, countries 594
9. must adjust environmental policies and laws in the textile and garment industry to overcome the inadequacies in environmental protection when producing and exporting products. textiles, especially in the dyeing and finishing stages of products. This also a challenge for Vietnam to join EVFTA by many sewn garments easily lead to environmental pollution, while the level of technology and environmental treatment in our country still faces many difficult. Fifth, meet labor standards and labor conditions The strong commitment to labor in EVFTA in terms of high standards and working conditions is also one of the major challenges facing the textile and garment industry in Vietnam. To avoid unfair competition by not ensuring basic working conditions of workers, EVFTA has launched its own commitments on labor. Specifically, Vietnam must adopt and maintain in the statute and its regulations on the working conditions can be acceptable to the minimum wage, the number of hours worked, level of safety and health worker 's community. This key is a key constraints, challenges for the textile industry in our country is an industry used very labor intensive and in fact not able to respond immediately be full of labor regulations as the Agreement. The transformation to meet the standards of workers should have some certain time, so in order to enjoy preferential treatment based on meeting the regulations on labor as the agreement is a challenge for with Vietnam's textile and garment industry. Moreover, Vietnam's textile and garment exports in recent years have shown that it has relied partly on the advantage of abundant labor force, cheap labor, if the labor commitments in EVFTA are implemented, in the short term, will it increases labor costs and has a strong impact on the product's competitiveness in exports. Therefore, in the short term, the acceptance of the high standards of the EVFTA Agreement on labor will hardly avoid adverse effects on Vietnam in international competition. Sixth, technical barriers and commercial defense In fact, many businesses are concerned that tariff barriers will decrease, but non–tariff technical barriers will increase. Types of technical barriers in trade in general and for textiles and garments are being applied more and more, higher, more sophisticated and complex by countries (Phan Thi Ha My, 2019). The form and complexity of technical barriers and the increasing tendency to use them in textile and apparel import markets pose great challenges to Vietnam's textile and garment exports as overcoming our country's technical barriers is still limited in both the macro and enterprise level. Not only does the World Trade Organization allow member countries to use trade remedies, but even the EVFTA also allows participating countries to use trade remedies legally. Trade through essential tools. The formulation, enactment and application of trade remedies by member countries must comply with the WTO anti–dumping, anti–subsidy and safeguard agreements. However, knowledge about trade defense of Vietnamese enterprises in general and textile enterprises is still very modest, this is a challenge for textile and garment enterprises in the integration process. According to a survey conducted by the Vietnam Chamber of Commerce and Industry in recent years, nearly 60% of enterprises lack understanding of trade defense knowledge. On the other hand, in order to export textile and garment products to the EU market, compulsory regulations must be complied with such as: Product safety applies to all products; chemicals applied to textiles, leather and accessories; The label applies specific rules for textiles (origin, fiber ratio, laundry instructions ). The technical barriers and regulations on hygiene and epidemiology of the EU are also very high that not many Vietnamese enterprises can meet. Along with that, the EU's trade defense measures are also very heavy to overcome not simple. Seventh, pressure on institutional reform to align with commitments in the EVFTA Agreement Joining EVFTA, Vietnam will have more opportunities, but will also face many challenges in terms of commodity competition as well as domestic institutional reforms to promote the operation of 595
10. the market economy, creating an environment. investment, openness and transparency. With high commitments on economic institutional reform in the Agreement, it will create motivation and pressure for Vietnam to reform. These commitments are much superior to what our country currently has, but they are completely consistent with Vietnam's long–term orientation of institutional reform. Institutional reform will bring many benefits to Vietnam, so this is both a mandatory requirement and a challenge when our country joins the EVFTA (Tran Thi Bich Nhan, Do Thi Minh Huong, 2019). Therefore, it is important for Vietnam to maintain a quality continual momentum after joining EVFTA. On the contrary, if the institutional reform is passive, lack of activeness, throughout the Government to the grassroots levels, it will lead to more challenges than the opportunities that EVFTA brings. Thus, the pressure for institutional reform is enormous in the case of our country. 3. FEATURES OF MARKET AND FORECAST POTENTIAL TEXTILES EXPORTS TO EU 3.1. EU textile and apparel market characteristics The EU is a large market with very diversified and rich needs, currently with 27 remaining countries after the UK left the European Union and about 500 million consumers, with per capita income reaching USD 32,900/ year, so the EU is an extremely large market, especially the market for textiles and garments, which are seasonal and highly fashionable. The EU market is not completely uniform, because in the EU there are many countries with different languages, customs, religions, geographic regions, climate, gender, age, and preferences, so the demand for clothing and textile products is extremely diverse and diverse. Although there are differences in consumer habits and tastes between national markets, the 27 countries in the EU are mainly located in the Western and Northern Europe, so they have cultural and economic similarities. The level of economic development of these countries is quite equal, so people in the EU have some common preferences about consumer habits that are very interested in quality and fashion, even this factor is sometimes important. more than the price factor. The EU is the convergence of the fashion capitals in the world, so they require strict designs and fashions. Textile products consumed in this market are highly fashionable, always changing designs, colors of materials to meet the psychology of consumers like innovation, originality and impressiveness. EU consumers have the preferences and usage habits of world– famous brands because they believe that these brands are associated with long–standing quality and prestige, so using these products can be assured of quality and safety for users. On the other hand, due to the high standard of living, EU people have strict requirements on the quality and safety of textile products. Therefore, price competition is not necessarily the optimal measure when entering the EU market. EU consumers tend to spend more on high–end textiles and garments with diverse requirements in terms of designs, designs and quality. They also require textile products to be safe for the user without causing allergies, creating discomfort for the wearer, without some chemicals banned by the European textile and apparel association. EU also uses quality metrics are: ISO 9000 and ISO 14000. Demand for the EU apparel market reached 80 billion euros annually, an average increase of 2.8% per year during 2015–2018. This value has been relatively stable since 2015 and demand is expected to remain stable in the coming years. The highest demand in the German market is about 15 billion euros, followed by the French market about 12 billion euros, the growth in these markets is 2–3%/year. Other European countries with significant apparel demand include Spain around 6.9 billion euros, Italy around 6.1 billion euros and the Netherlands at 4.8 billion euros. From 2015–2018, demand in Spain and the Netherlands increased at an average annual growth rate of 4.6% and 9.6%. Demand for goods apparel Europe's significantly higher than the production of about three times the value. This spurred the demand for import of textiles and clothing and turned Europe into a potential import market. 596
11. The six leading countries in the EU for garment imports from developing countries in 2018 were the Federal Republic of Germany, the leading importer of 33 billion euros; Great Britain (21 billion euros) and France (20 billion euros), Spain (16 billion euros), Italy (13 billion euros) and the Netherlands (11 billion euros). Germany, France, UK and Spain account for 68% to 79% of total imports from developing countries, higher than the 64% average of Europe. Although the Netherlands may be a relatively small market, the country is an important trading center in Europe. Importers in the Netherlands re–export apparel from developing countries across Europe. During the period 2015– 2018, Poland and the Czech Republic increased their imports of textiles and clothing from developing countries with an average annual growth rate of 16% to 19% making these Eastern European countries. become an emerging market with great potential. On the side of main textile and garment suppliers to the EU market, China, Bangladesh and Turkey together account for 44% of the EU's garment production. Other leading suppliers from developing countries are India (4.2%), Cambodia (3.2%), Vietnam (2.8%), Pakistan (2.2%) and Morocco. (2.1%). 3.2. Forecasting the potential of Vietnam's textile and garment exports to the EU market According to the Ministry of Planning and Investment, the EVFTA Agreement, which is expected to come into effect in 2020, will increase Vietnam's exports to the EU by about 20% by 2020, 42.7% in 2025 and 44, 37% by 2030. EVFTA is expected to contribute significantly to boosting export growth of both sides, export turnover of Vietnam and EU is expected to increase by 15 billion EUR and 8.3 respectively. billion EUR by 2035. This is a great premise for Vietnamese businesses to take advantage of opportunities to bring their products into the EU market. EVFTA is considered as one of the biggest expected agreements with immediate positive impacts on Vietnamese enterprises. According to forecasts of the National Center for Socio–Economic Forecasting and Information (NCIP), by 2020, many commodity sectors have a great growth opportunity thanks to the prospect of new–generation FTAs, especially from EVFTA and CPTPP, textile exports to EVFTA develop strongly when EVFTA is implemented. NCIP forecasts that textiles and garments in the EU market will increase rapidly at a rate of 67% by 2025 compared to the scenario without agreement. By 2020, it will reach 5–5.5 billion USD, an increase from 1.3 billion USD in 2020 and 3.2 billion USD in 2025. EVFTA is expected to make a significant contribution to boosting export growth of on both sides, the export turnover of Vietnam and the EU is expected to increase by 15 billion EUR and 8.3 billion EUR by 2035, respectively. In macro terms, EVFTA will contribute to the increase in GDP of Vietnam at a level on average 2.18–3.25% in the period 2019–2023; 4.57% –5.30% in the period 2024–2028; and 7.07– 7.72% in the years 2029–2033. This proves that EVFTA opens many opportunities in developing Vietnam's textile and garment export in the coming period, helping Vietnam develop textile exports in both quality and quality, becoming a great exporting country of textiles and garment in the world. 4. SOLUTIONS TO BOOST VIETNAM'S TEXTILE AND GARMENT EXPORTS WHEN JOINING EVFTA 4.1. The resolution from the State – To further step up the implementation of policies to attract domestic and foreign investment, direct and indirect investment, especially foreign direct investment in garment production and export. Encourage in–depth investment, improve product quality by investing in all phases of yarn, weaving, dyeing, and sewing, focusing on the development of the textile industry and textile supporting industries meet the textile production line. The State needs to create favorable conditions to attract, selectively license and give priority to large investment projects, with advanced technology and equipment and a friendly and harmless wastewater treatment process. environment in the textile and 597
12. dyeing stage to solve the "bottleneck" of the industry and to meet the origin requirements of a Free Trade Agreement such as EVFTA, connecting with domestic garment enterprises, forming the above link the whole value chain. It is necessary to select enterprises investing with high technology in the segments that Vietnam's supply chain is currently lacking in the textile supply chain, including yarn, weaving and raw fabrics. – Develop plans and develop a strategy for the development of textile and garment industrial zones to meet the supply shortage to satisfy EVFTA's fabric origin rule. In which, focusing on building mechanisms and policies to develop synchronously from yarn, weaving, dyeing to finishing for the textile and garment industry, because the biggest shortcoming of our current textile in the supply chain is the stage. supplying raw materials and input materials (Hoa Quynh, 2019). The localities should create favorable conditions for enterprises to invest in weaving and dyeing with modern industrial wastewater treatment. Need to have systems and policies in painting ch textile industry for the period in the future, such as: development planning Vietnam textile sector until 2020, vision to n 2030–2040, with the formation of clusters textile, create a production linkage network between enterprises in the industry, develop the value chain of the industry, form a textile and dyeing industry In which, the Ministry of Industry and Trade is the pillar in the strategy of building supporting platforms for the textile industry. To attach importance to the development of supporting industries as a key priority, to have a national plan for the construction of raw material areas, to have a strategy on developing raw material zones or alternative sources of imported raw materials. – Complete laws and institutions to ensure transparency in production, and ensure the requirements set out in the Agreement. Ministries and branches should make efforts to prepare, in which completing the legal framework is a top priority, so that it can be implemented as soon as the EVFTA Agreement comes into effect. The State needs to continue to improve more on legal documents, especially the provisions on environmental issues, on copyright, on origin. Those legal documents need to have clarity, consistency, consistency, non–overlap, conflict among laws, legal documents, their feasibility must be high and suitable with the actual situation and law legal international. Once the documents have been developed, there should be institutions to ensure strict and deterrent law enforcement. – Encourage the application of new science and technology to the production and export of textiles and garments. It is necessary to implement solutions to invest in modern and advanced techniques, science and technology to increase productivity and produce high quality textile and garment products. Support enterprises to promote activities of researching and deploying technical advances, transferring technology, improving production capacity of textile enterprises. Support to upgrade the centers of inspection, quality inspection of textile products, support for textile enterprises in quality management, overcome technical barriers. – There are measures to support enterprises on the State basis to continue reforming administrative procedures, especially administrative procedures in the fields of customs, taxes, land allocation procedures, investment procedures becomes quick, streamlining, while ensuring transparency, specialized test, remove difficulties for enterprises and ensure business investment environment open for business. It is necessary to quickly have legal provisions to support enterprises to obtain certificates of origin of goods of Vietnam. The rules of origin are often very detailed, so the relevant agencies need to compile in the form of a manual to help businesses understand in time. Besides to help businesses grasp the deeper, timelier, the agency should have a rapid response unit to help enterprises to overcome the difficulties as soon as they encounter. Furthermore, for supporting industries to be developed effectively, businesses need support to build their capacity to move to higher forms 598
13. rather than outsourcing, so that they can decide to buy fabric. where, to choose which supplier, then take the initiative in production. – To build advanced, concentrated technical infrastructures and apply high technologies to develop the textile and garment industry in a sustainable manner. The State and enterprises jointly invest more strongly in the development of science and technology. In addition, the state needs to build industrial zones with wastewater treatment, call for investment in a complete yarn – weaving – dyeing factory, as well as offer more drastic solutions to develop the domestic market. The localities need to coordinate so that the locations of industrial zones can attract more labor. It is necessary to have more concentrated industrial clusters to attract businesses supporting the textile and garment industry, in which, industrial clusters will be responsible for concentrated wastewater treatment and local treatment will be borne by enterprises’ responsibility. If so, the difficulties of enterprises in treating wastewater from dyeing stage or other materials related to the environment will be removed. As such, product prices will be more competitive and the environment will be managed more closely. In fact, some localities have turned their backs on the textile and garment industry, especially textile and dyeing, including projects of reputable investors, which have all the requirements but are not licensed. This, the government and local authorities need to consider and promptly settle in order not to miss the opportunity to build and develop supporting industries. – Promote and further improve the quality of market research and forecasts based on supporting enterprises to increase direct contact with business partners, effectively use the research method. market newspaper, information technology application in market forecast research. Support enterprises accurately and promptly information related to international economic integration, especially information related to the new generation FTAs, so that businesses can prepare and utilize opportunities, limit difficulties and challenges in order to effectively exploit the export potential. It is necessary to fully inform documents, decrees, mechanisms and policies related to textile export activities to enterprises, especially creating a clear legal environment for textile and garment enterprises. promote all creative possibilities in developing the export market. – Strengthen domestic and foreign trade promotion activities in order to create opportunities to connect between businesses, develop and expand markets for export of textiles and garments. Research to comprehensively innovate trade promotion, review trade promotion activities at macro level to add new trade promotion activities, increase financial resources for trade promotion activities. The State also needs to develop a large–scale and regular export promotion program to provide practical information for garment export and textile enterprises. Creating trademarks, trademarks for textile export goods, establishing and effectively using the Trade Promotion Fund to help enterprises participate in fairs, exhibitions, survey and search school. Agencies trade promotion Government should actively provide corporate information relating to market EU textile, performing survey activities some key markets point, new market development and support supporting businesses to develop brands in EU markets that Vietnam has export potential. – Support the formation and development of business links in the textile and garment sector. There are policies to encourage the strengthening of vertical and horizontal links and cooperation among enterprises, as well as establishing partnerships and strategic partnerships to develop textile exports in the long run long. – It is necessary to disseminate and propagate so that businesses have a correct and clear understanding of the EVFTA Agreement. In order to enjoy the incentives that the EVFTA Agreement offers, businesses need to understand this Agreement, especially information about tariff commitments, rules of origin and technical barriers. To help textile and garment enterprises to access this information by means of such measures as: actively disseminating the content of Trade Agreements through official 599
14. websites of the Government and ministries; propagating through communication channels such as the press, television; opening seminars for businesses about EVFTA so that businesses can have plans for the EU market and facilitate implementation; Regarding environmental regulations, authorities need to implement connectivity and improvement activities to bring the concepts of greening, cleaner production to businesses, and support businesses to improve their quality energy and productivity. – There are strategies and plans provide a workforce qualified high for textile industry. Providing the market with a contingent of highly qualified and skilled workers is a goal that the State needs to pay attention to and achieve. In order to have human resources to meet the requirements of economic integration, branches and localities need to pay attention to developing education and training in association with science and technology development, investment in the replication and development of facilities. vocational training of high quality according to international standards; attracting businesses to participate in vocational training; organizing enrollment, vocational training according to the needs of the labor market An important solution to improving the quality of human resources is the need to change the training method, rearrange the system of vocational schools, reduce the meeting and standardizing the contingent of teachers, learning equipment for students, issuing regulations on bilateral cooperation between schools and businesses, creating conditions for parties to actively improve the quality of human resources. Particularly, the State should focus on training the workforce for the machinery and equipment advanced, new technology. – It is necessary to strengthen coordination with the textile and garment industry associations in advising policies, on mechanism and solutions to solve difficulties and protect the legitimate interests of garment export enterprises Need to strengthen coordination Consolidating with textile and garment industry associations in advising on policy, mechanism and solutions to remove difficulties and protect legitimate interests of garment export enterprises. The Vietnam Textile and Apparel Association should do better its role as a bridge between businesses and domestic and foreign markets through trade promotion activities, international cooperation activities. On the other hand, it is necessary to consolidate the organization and operation mechanism of the textile and garment industry association in the direction of deep expertise to really be a bridge between the business community and state management agencies to create a favorable environment. beneficial for the production and export business of textile enterprises. Promote international cooperation with organizations and trade associations in the region and around the world in order to take advantage of financial support, professional skills, technology and operating experience. 4.2. Resolution from the business. – Increasing added value from export of textiles and garments based on encouraging the export of new products produced from the application of advanced technology and high added value in line with the trend of of the EU textile market and its competitive advantage. Focus on exploiting opportunities for market development and expansion from commitments in the EVFTA Agreement to boost exports to the markets within the EU with a large proportion of export turnover and exploit markets. has high export potential in the future to increase market share to new EU markets. – Textile enterprises need to choose the appropriate method to actively penetrate the distribution channels of the EU market. Since establishing close and close relationship with distribution centers, major supermarkets in the EU market; organizing joint ventures in the form of using licenses, trademarks of well–known brands; promote the promotion of Vietnamese garment brands in the EU market (Tran Thi Thanh Thuy, 2016). – To be proactive in the supply of raw materials, quickly change from processing to direct production, on the basis of applying advanced and modern science and technology. In order to be 600
15. proactive in the supply of raw materials for production and export activities, businesses need to coordinate with regions and localities in the production process, and at the same time create a cohesion in purchasing raw materials between businesses. industry and the place of production of raw materials. On the other hand, in order to increase export efficiency and meet the long–term requirements of EVFTA, our country's textile and garment exporters need to shift from simple processing to FOB (self–material) or ODM (self–design) is geared towards ways to create higher value–added products. From there, businesses will meet the increasing consumer demand of importing countries in the EU. – Improving the quality of exported textiles and garments on the basis of strictly inspecting the quality of raw materials; strictly comply with the ordering party's requirements on raw materials, auxiliary materials, technology as well as production process; innovating technological processes so that textile products meet international quality standards such as ISO 9000, ISO 14000 and also meet the unique EU standards such as: Brand standards apparel ISO 3758; washing standards ISO 3759, ISO 5077, ISO 6330; standards for hygroscopicity are based on German standards DIN 5411; washing standards based on ISO 3175 standard; Criteria for assessing the level of fabric ruffled are based on British standards BS 5411 these are the standards that the EU market is very interested in that Vietnamese textile exporters must meet. (Tran Thi Thanh Thuy, 2016). Manufacturing enterprises must be conscious and responsible to the end for the products made so that consumers can feel secure and trust. It is necessary to strictly inspect the quality of raw materials, create partners to provide stable raw materials, well preserve raw materials to avoid degradation. Besides, it is necessary to strictly comply with the ordering party's requirements on raw materials, technology as well as production process. Improving the quality of Vietnamese textiles and garments by innovating processes, achieving ISO 9000 quality management certificates, and ISO 14000 environmental certification. For businesses with financial conditions, they can research and implement more eco–branding standards for products to increase their competitiveness in the EU market. The EVFTA allows exporters (which meet certain EU requirements) to self–certify their origin but will strengthen post–customs clearance post– clearance. Post–check can last up to 5 years or even longer. Accordingly, businesses will have to be transparent information, prepare clear and consistent documents and documents; To keep full records, even if the goods have been cleared. With this mechanism, businesses that do not transparently do not make false declarations, maybe many years later they will still be "touched" and penalties for fraud are certainly not light. – It is necessary to have a plan to change the method of improving the competitiveness of export textile products on the basis of improving technology, machinery, equipment, improving quality, reducing costs, improving designs and packaging products. Develop a strategy for developing export products in the direction of improving production processes, applying modern advanced science and technology, investing in the procurement of equipment with high technical standards, improving management in product quality inspection and examination to increase product competitiveness; increase research and focus on investment in building and developing brand name of enterprises to enhance the added value of products; improving position in the global value chain with deep–processed products and prestigious products in the European Union's textile and garment market. In the design stage, businesses can build a 3D design platform to respond to the rapid changes of major markets around the world. In the production stage, scientific and technological solutions to green textile industry play an important role in the development strategy. Standard goods production areas with many fixed parts, with little change, can completely apply robots, even more difficult stages such as neck stitching, hand stitching, cufflinks. The stages that require high skills, the productivity depends on the worker, they also have automatic equipment to reduce the number of employees, 601
16. improve productivity and especially stabilize the quality between products. In management, enterprises need to focus on organizing production, finding ways to reduce production costs, researching and applying advanced production technologies, management software to improve labor productivity. and competitiveness. – Actively perform well in marketing, information and marketing. Promote market research and forecast on the basis of increased direct contact with EU partners in many different forms. Proactively marketing to promptly grasp market demand and access to advances in production and business. To diversify EU export markets to avoid business risks and exploit potentials in new markets, to avoid over–dependence on some markets because of maintaining and developing transmission markets. system. – Understand carefully EVFTA's requirements for textiles, comply with requirements for sustainable development, and attract more orders in the future. Textile enterprises need to focus on researching, understanding and mastering the provisions of international trade law, origin requirements, tax reduction roadmap, technical barriers of the new generation FTA EVFTA. Establishing production plans, activities to ensure commitments and regulations to take advantage of opportunities and overcome barriers of importing countries. Catching up with the changes in government policies, especially tax policies and information on the EU market under the EVFTA agreement will be signed (non–tariff barriers, quality standards, technical standards, product safety, quarantine, economic development associated with environmental protection ) to take advantage of preferences for tax reduction, production adjustment, export market expansion. At the same time, building a market strategy for each product, ensuring compliance with commitments in EVFTA. Seriously implementing the commitments in this agreement to take full advantage of the incentives from the Agreement to expand and develop the export market of textiles and garments. – Improve knowledge of international trade law to be ready to deal with commercial disputes occurring, proactively take measures to handle disputes and unfair competition in textile export into the EU market. Actively participate in the value chain of multinational companies, increase the use of production and business support services to improve quality, efficiency and professionalism in production and business activities of textile and garment export enterprises, especially small and medium enterprises. – Proactively and actively implement linkages and cooperation between textile and garment manufacturing and exporting enterprises to the EU, enhancing coordination between businesses to create a complete supply chain. To link textile businesses, it is necessary to build a team of qualified and solid businessmen to create a strong, highly competitive business community with national spirit and social responsibility, closely linking and actively participating in the global production network and value chain. It is important to focus on joint activities to promote the strength of the Vietnamese business community by organizing many forums, seminars To share experiences as well as advocate and support businesses join hands, exploit each other's strengths, create quality and reputable products together to build a strong brand name, dominate the domestic market and be competitive in the international market. Besides, vertical linkage in the textile and garment industry should also be considered. Export textile enterprises also need to recognize the trend of participating in the global supply chain, efforts to link and proactively combine raw materials and accessories, reduce processing and increase production value. Small and medium enterprises also need to link together to reduce internal competition pressure between industries and improve competitiveness in international markets. Under current conditions, the direction for small and medium textile enterprises in Vietnam is to link along the supply chain. Accordingly, the small and medium textile and garment exporting enterprises need to actively look to enterprises producing raw materials, or link to invest in material 602
17. sources of fabric to minimize import. This both helps to ensure the rules of origin and helps ensure price competitiveness. Pay more attention to building strategic links with major retailers and importers in the world, participating in their link chain to stabilize orders, customers, access management experience, their business experience. The association and cooperation should be done through appropriate measures and forms, ensuring the harmonization of interests of all parties involved in promoting the effectiveness of cooperative association, creating synergy. of all enterprises in the economy to improve competitiveness breast promote exports ng. Enterprises need to establish close and close relationships with distribution centers, major supermarkets in the EU market through Vietnamese deals in the EU, the European Union delegation in Vietnam, and embassies of EU countries in Vietnam to export directly, minimizing export through intermediaries. Organizing joint ventures under forms such as using licenses, trademarks of well–known trademarks. Enterprises with Vietnamese economic potential can enter into joint ventures to become subsidiaries of transnational companies with famous EU brands. In addition to export directly or through joint ventures exported to penetrate the EU market, the textile enterprises Vietnam also needs to study enhanced penetration in the form of direct investments to reduce b peppers barriers non–tariff. – Enterprises need to have timely transformation steps, offering specific solutions for each market scenario to deeply participate in the value chain. Enterprises must recognize that the textile and garment industry is not only a supporting industry to create jobs, to help increase national export turnover, but also as an innovative industry. Need an association, an organization to develop the fashion industry, at the same time linking with the textile and garment sector to form a complete value chain. Take advantage of opportunities to attract orders, maintain and effectively exploit traditional customers and develop new customers, contributing to stabilizing production and securing jobs for employees. Focusing on building strategic links with customers who are major retailers and importers in the world, participating in their link chains to stabilize orders, customers, access management experience. Their business continues to promote trade promotion activities, organizing survey delegations and participating in fairs and exhibitions in key, potential and new markets at the same time, applying the Technology 4.0 in fashion design and brand development. For businesses that have affirmed their brands in the domestic market, they need to have plans to promote through e- commerce channels, fashion shows to introduce to foreign customers, proceed to export products by its brand. These businesses also promote research on fashion trends and orient designers to produce designs/ collections to promote ODM (self–design sales), OBM (brand ownership). private). – In terms of Revolution 4.0, requires enterprises exporting textiles to e a form more the trading methods of international trade, especially up to use e-commerce in commercial transactions to keep pace with the trends of the EU market and create new business advantages. Asian p e-commerce in the promotion of products in the implementation of online transactions will help to overcome was the limited space, do expand the market space. Currently, in the new FTAs, regulations on e-commerce are mentioned and this is considered as a development trend of international trade in the future. Enterprises exporting textile should soon implement investment strategies for e-commerce to have the advantage of competing goods manufacturing exports. Apply 3D printing technology in fashion design to meet the consumer's requirements, choose the appropriate stages to automate, digitize, prepare the conditions for receiving and apply the achievements of the life. industrial revolution 4.0. – Developing high quality human resources in enterprises. Improving labor skills in the textile and garment industry is of utmost importance in increasing labor productivity and product quality. Businesses should have the labor training session periodically to provide deeper knowledge about the profession, in order to gradually gradually raising the thingsand workmanship for workers. Besides, enterprises need to build a workforce qualified in high industries, capable of using manual operation proficient equipment and latest machinery, construction projects, training human resources thoughtfully having a 603
18. fashion vision and a foreign language to update the world 's fashion trends. Improve management and professional qualifications for the staff, regularly train and improve the skills of workers in various training forms and contents, attach importance to the training of labors in the department. study engineering, production and business management. Enterprises also need to guarantee security provisions on labor and the environment. Need to enforce regulations on working time and the cultivation of guava labor. Improved living conditions and working conditions for garment workers. To build a proper treatment regime for employees, a scientific working regime, and a mechanism to encourage employees to improve themselves, and encourage inventions of employees. Focusing on recruiting personnel, selecting people with appropriate expertise and good skills to build a qualified workforce in the enterprise. Promote the building of corporate culture, create a healthy, positive and professional cultural environment in order to create a driving force to promote creativity and competitiveness of textile export enterprises. REFERENCES 1. Tran Thi Thanh Thuy (2016) Export of textiles and garments to the EU market: Opportunities and challenges, Financial Review 2nd period (4/2016). 2. Nguyen Thanh Binh, Nguyen Thi Viet Ha (201 7), Situation of FTAs and problems posed on Vietnam's textile and garment exports, Trade Research Journal No. 28 (8/2017). 3. Quang Nam (2019), What are the opportunities for textile businesses in EVFTA? Textile and Fashion Magazine No. 371 July 2019. 4. Hoa Quynh (2019), EVFTA create attractive force for the textile industry, Industry and Trade Newspaper No. 93 issued on August 5, 2019. 5. Vietnam Russia (2019), Textile industry has plenty of room in the EU market, Industry and Trade Newspaper No. 81 issued on July 8, 2019. 6. Phan Thi Ha My (2019), Opportunities and problems posed for Vietnam when participating in EVFTA, Financial Review, July 1, 2019. 7. Nguyen Thi Thanh Tam (2019), Implementing EVFTA: Vietnamese regulations that need attention, Finance Review, July 1, 2019. 8. Tran Thi Bich Nhan, Do Thi Minh Huong (2019), Opportunities and challenges when implementing new–generation free trade agreements, Finance Review, March 1, 2019. 9. General Statistics Office, Statistics on export turnover of textiles and garments in Vietnam from year to year. 10. Nguyen Van Tuan, Promoting Vietnam's textile and garment exports when joining a free trade agreement with the European Union, Economy and Development magazine No. 271 (II) January 2020. 604