Vietnam and the European Union

(FTA) negotiations have come to an end and it is possible to sign agreements within this (2015) year.

Kay Monica, Deputy Secretary General of Kampuchea Garment Association, said.

The agreement may have an impact on the footwear industry in Kampuchea.

When the agreement comes into effect two years later, Vietnamese goods will be available.

Tariff free will bring great impact to the garment industry in Kampuchea. Therefore, local factories must be prepared mentally.

Canal says, two years are not very long, manufacturers should start planning countermeasures from now on.

The Ministry of commerce is also worried about the establishment of a free trade area between Vietnam and the European Union, which has a major impact on the garment industry and footwear industry in Kampuchea.

Song Supa, director general of the Ministry of Commerce, said that the Ministry of Commerce hopes to make every effort to provide convenience and reduce costs to meet future challenges.

At present, there is little difference in labor cost between Kampuchea and Vietnam, but Vietnamese workers have higher productivity and enjoy more advantages in production lines and exports.

When Vietnam is like

After enjoying the EU's preferential treatment, Kampuchea's garments and shoes will lose competitiveness. Now the foresight problem will come up one day, and we should make early efforts to avoid the problem.