EU Removes Quotas on Vietnamese Garment and Textile

EU Removes Quotas on Vietnamese Garment and Textile

The European Union (EU) will lift quotas on Vietnamese garment and textile products from January 1, 2005, according to an agreement signed by EU Ambassador to Vietnam Markus Cornaro and Deputy Trade Minister Luong Van Tu in Hanoi on December 3.

The agreement is the second most important bilateral trade deal between the two sides since the bloc agreed to Vietnam's World Trade Organization (WTO) accession in Hanoi on October 9, helping to bring the two-way trade relationship to a new height, said the Vietnamese deputy minister.

Trade Minister Truong Dinh Tuyen said the agreement was the result of very long negotiations between the two sides.

"This will create favourable conditions for our garment enterprises to develop on their own accords and actively enter the EU market", Mr Tuyen said. The elimination of export quotas also helps to get rid of any wrong-doings regarding quota allocation, the Minister added.

The ministry will work with domestic garment enterprises and the Ministry of Industry early this month to discuss ways to improve the quality and competitiveness of Vietnamese products sold in the EU.

The Trade Ministry has recently allocated garment and textile export quotas on trousers (Cat.6) to the EU to 23 enterprises. It has also granted export license for the Cat.5 and Cat.15, fulfilling 81.47 per cent and 78.32 per cent of this year's export quota, respectively.

Vietnam's apparel export revenue is targeted at US$4.2 billion this year, including US$1 billion from the EU market.

EU-bound apparel shipments have so far reached nearly US$633.15 million from the beginning of the year to December 2.

• V.P