Vietnam garment makers face hitches in EU deal

Coping problems: Staff shortages have already started to manifest in Vietnam’s garment industry, where manufacturers are focused on labour-intensive processes. — Reuters

FOR Tran Nhu Tung, Vietnam’s newly signed free trade deal with the European Union presents both huge opportunity and a logistical headache.

The vice chairman of Thanh Cong Textile Garment Investment Trading (TCM) in Ho Chi Minh City is planning a rapid expansion in anticipation of the influx of orders the tariff-slashing EU-Vietnam Free Trade Agreement (EVFTA) promises to bring.“The EVFTA is the game changer that will pave the way for Vietnamese garments to dominate the European market, ” Tung said amid the clack of thousands of sewing machines in the metal-roofed factory on the outskirts of Vietnam’s commercial centre.