Vietnam clothes manufacturers with a concern called "rules of orgin" - fabric-forward rule

Apart from yarn-forward rule of origin, another rule called "fabric forward" also should be taken into account by Vietnam clothes manufacturers.

Considered as the less strict rule amongst those rules of origin that Vietnam clothes manufacturers have to bear with before their products are legal to be exported, Fabric-forward rule means the fabric that Viet nam clothes manufacturers used in their production must be processed (i.e woven or knit) in the countries belonging to the trade agreement. Which makes it less strict is that the yarns used for making fabric are not required to be originated in the countries in partnership.
 

Before, this rule of origin was applied in the agreement Japan-ASEAN FTA and Japan-Vietnam Economic Partnership (JVEPA), in fact, the benefit from the rule for Vietnam clothes manufacturers is not that much because the fabrics that are produced in Vietnam are not enough to satisfy all the demand for production of Vietnam clothes manufacturers. They still have to rely much on importing fabrics from overseas especially China.
 

Having looked beyond the situation, Vietnam Government is paying more attention in the development of textile companies focusing on supplying Vietnam clothes manufacturers with required materials for their production.