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How Vietnam turned FTAs into apparel growth and what Sri Lanka can learn

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In the past fifteen years, Vietnam has become a prime example of how trade policy can drive industrial growth, particularly in the apparel sector. This transformation is the result of a strategic focus on Free Trade Agreements (FTAs), export-oriented manufacturing, and integration into global value chains. Sri Lanka can draw valuable insights from Vietnam’s experience, adapting them to its unique context.

Vietnam’s progress becomes even clearer when viewed against Sri Lanka’s current trade profile. Over the past several decades, Vietnam has used trade policy as a deliberate growth tool, implementing 19 bilateral and multilateral FTAs that cover around 60 economies. This has helped deepen its trade openness from 19% of GDP in 1988 to 184% in 2022. Trade openness measures the value of a country’s international trade as a share of GDP, and a higher ratio generally reflects stronger integration with global markets. By comparison, Sri Lanka’s trade openness is estimated at around 50% to 55%, indicating that international trade plays a smaller role in the economy and reflecting the country’s more inward-looking growth pattern.

Vietnam’s FTA network includes major agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), the Regional Comprehensive Economic Partnership (RCEP), and bilateral agreements with markets such as the UK, Israel, and the UAE. Collectively, these agreements give Vietnam access to key markets including the EU, UK, Japan, Canada, Australia, China, South Korea, and ASEAN countries, covering a major share of global GDP. This wide market access has strengthened Vietnam’s position as a reliable global sourcing hub. As a result, Vietnam’s apparel exports are projected to reach USD 46 billion by 2025, supported by a trade surplus of USD 21 billion. Its growth has also been reinforced by the “China+1” strategy, as global brands continue to diversify sourcing beyond China.

In the past 15 years, Vietnam’s apparel exports have grown from $13bn to $45bn an increase of 250%. By contrast, Sri Lanka’s apparel exports have grown just 58% from $3.4 to $5.4bn.

In order to successfully negotiate and implement these numerous trade agreements, Vietnam’s negotiation architecture is highly centralized, technically strong, and politically empowered.

The dedicated chief negotiator sits at deputyminister level, ensuring authority across ministries.

For major bilateral negotiations (e.g., with the U.S.), Vietnam forms specialized, multiministry teams led by a full minister.

This structure is one reason Vietnam has been able to negotiate 19 FTAs covering 60+ economies and integrate deeply into global value chains.

Like Sri Lanka, Vietnam exports some 40% of its apparel to the USA. Whilst neither country until recently had an FTA with the USA, in the wake of the USA Reciprocal Tariffs introduced in April 2025, Vietnam has now reached an agreement with the USA on tariffs ensuring that when the dust settles, Vietnam will have market access to the USA at concessionary tariff rates.

With Japan, another big market for apparel from Vietnam, there are not one, but three separate trade agreements between the two countries ensuring a free flow of trade between the two countries, including very significant investments from Japan into Vietnam from which this trade flows.

Similarly, whether its with the EU, the UK or South Korea all major markets for apparel from Vietnam, there are long standing trade agreements in place.

Sri Lanka’s apparel sector cannot merely replicate Vietnam’s success but can learn critical lessons. Market access through FTAs is only meaningful with consistent policies, investment readiness, and the capacity to respond to market demands. Effective use of FTAs requires firms to adapt their sourcing and compliance processes. Currently, Sri Lanka generates US 5 billion dollars in apparel exports and employs about 350,000 people, but to reach higher targets, it must improve its FTA strategy and make trade policies more accessible.

Strategic recommendations

To maximize the benefits of FTAs, Sri Lanka should focus on

Sri Lanka needs to have a full time dedicated resource for identification and negotiation of FTAs.

FTAs need to be done with markets that can drive strategic investments into the country, and act a market for Sri Lanka’s export basket.

Vietnam’s experience demonstrates that aligning trade access, investment, infrastructure, skills, and sustainability strengthens positions in global supply chains. Sri Lanka has the potential to become a higher-value, ethical apparel partner, but it must strategically leverage FTAs and enhance competitiveness. As the Joint Apparel Association Forum (JAAF) and the apparel sector plan their future, adopting a national approach that recognizes the industry’s growth potential is crucial. The challenge lies in creating the conditions for the sector to thrive in its next phase.



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David Pieris Automobiles opens Sri Lanka’s first GWM Flagship Experience Centre

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Rohana Dissanayake, Group Chairman and Managing Director, David Pieris Group of Companies along with Mahesh Gunathilake, Director, David Pieris Automobiles (Private) cutting the ribbon to open GWM Flagship Experience Centre at the Access Tower, Union Place, Colombo

David Pieris Automobiles (Private) Limited (DPA), the four-wheeler sales arm of the David Pieris Group, announced the opening of its state-of-the-art GWM Flagship Experience Centre at 250, Access Tower 03, Union Place, Colombo 02, marking a significant milestone in the evolution of Sri Lanka’s automotive retail landscape.

The newly opened flagship facility is designed to deliver a truly world-class automotive experience, showcasing the latest innovations and technologies from GWM, one of the world’s leading automobile manufacturers. As the first and only vehicle experience centre of its kind in Sri Lanka, it offers customers an immersive journey that goes beyond the traditional showroom concept. Visitors can explore GWM’s premium range of SUVs and electric vehicles, including the HAVAL H6 HEV, HAVAL H6 PHEV, HAVAL H6 GT PHEV, TANK 300 HEV and TANK 500 HEV, while enjoying dedicated vehicle demonstration zones, test-drive opportunities, and a host of innovative customer engagement experiences designed to redefine the vehicle purchasing journey. GWM’s product portfolio in Sri Lanka will be further expanded in the coming months with the introduction of several new models, including a range of fully electric vehicles.

With a legacy spanning over four decades, the David Pieris Group has earned a reputation as one of Sri Lanka’s most trusted automotive organisations, particularly for its comprehensive after-sales support and customer service excellence. Strengthening its commitment to GWM customers, DPA has already established a dedicated, state-of-the-art GWM service centre at No. 75, Hyde Park Corner, Colombo 02, supported by an expanding network of authorised service dealers across the island to ensure convenient and reliable customer care.

Commenting on the opening, Mahesh Gunathilake, Director, David Pieris Automobiles, stated: “The opening of the GWM Flagship Experience Centre represents a significant milestone in our journey with the GWM brand in Sri Lanka. This is the country’s first dedicated state-of-the-art experience centre for GWM vehicles, offering customers the opportunity to experience world-class automotive technology, premium comfort and advanced safety features. GWM has successfully redefined modern mobility by delivering high-end luxury and innovation at an affordable price point, and we are proud to bring this exceptional experience to Sri Lankan motorists.”

The opening of the flagship facility further reinforces David Pieris Automobiles’ commitment to expanding GWM’s presence in Sri Lanka while providing customers with an unmatched ownership experience backed by the Group’s renowned sales and after-sales expertise.(DPA)

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Sri Lanka’s culinary strengths engagingly explored

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Issue no.1 of a ground-breaking journal on Sri Lankan food and culture has just been launched and it’s such an engaging ‘read’ that it just cannot be put down by the reader until s/he reaches the last word in the publication. Titled ‘ROOTED’ it is a publication of Rooted Publications Pvt. Ltd. Colombo (www.rootedsrilanka.com).

This is no run-of-the-mill journal on local ‘culinary delights’. It is a profoundly empathetic, sensitive exploration of the uniqueness of Sri Lankan food and the cultures of the country. In other words, it’s a close, appreciative examination of what makes the native food of Sri Lanka and its cultures special and hard to replicate and replace.

Writers of the arrestingly illustrated articles in ‘ROOTED’ have apparently spared no pains to travel the length and breadth of Sri Lanka to unravel, with mesmeric pleasure, the food and drink offers at the heart of Sri Lankan cuisine. The food connoisseur has all his curiosities satisfied in the journal and cannot prevent his taste buds from being stimulated on reading the contents of the journal.

Regardless of geographical or physical location what Sri Lanka has to offer its own people or the visitor to the country by way of particularly indigenous dishes and meal spreads are made to come alive in these pages. The connoisseurs and food experts are taken on an entrancing journey into homes transformed into family restaurants, aromatic eateries and bustling market places with sizzling catch along the sea coast of the island to its interior in this appetizing survey of Sri Lankan food.

What is distinct in terms of food and drink to the different ethnicities and cultures of the land are rendered in larger-than-life eye-catching portrayals via the pen and the lens. Consequently the journal not only celebrates food but also its distinctive cultural roots and identities. That is, people are serenaded alongside food.

In the process, the ‘ambul thials’, the ‘ala thel and brinjal badums’, the ‘thilapia curries’, the multifarious, ‘mouth-burning sambols’ and heady ‘Arrack shots’ experimentally mixed, to name just a few such offers of food and drink with a uniquely Sri Lankan stamp on them, are made to come alive in ‘ROOTED’.

The magazine has been put together by an editorial team headed by editors Chadini Fernando, Vidya Balachander and they need to be commended on a job well done.

By Lynn Ockersz

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MO Marketplace App: A space for women to sell in Sri Lanka

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The team behind the current success of 14,000 registered users

In Sri Lanka, selling something has always carried an unspoken risk for women. Share your number with a stranger. Arrange a meeting. Handle cash. Hope for the best.

MO Marketplace, live since June 2024, has removed every one of those friction points. Buyers and sellers on the platform never need to exchange personal contact details. Payments are held in escrow until delivery is confirmed. Pickup and drop-off is managed entirely by MO. Two people can complete a transaction from start to finish without ever speaking directly to each other.

For women running home-based businesses or women simply have too many clothes and things, that architecture is not a convenience. It is a fundamental shift in what is possible.

The evidence is in the listings. Clothing, fashion, and home goods dominate the platform, categories overwhelmingly driven by female sellers and buyers. From home-based clothing traders to small lifestyle businesses operating out of living rooms across Colombo, women are using MO to participate in commerce on their own terms, without compromising safety or privacy.

The platform has recorded 45,000 downloads and 14,000 registered users in 18 months, with peak monthly active users of 15,000. Commissions are capped at a flat 10%, significantly below the 15% to 30% charged by dominant platforms, making it accessible for small and micro sellers.

Coming mid-2026, AI tools will automatically generate listing descriptions and enhance product images, removing two of the most common barriers to getting started as a seller. Video selling is also on its way.

Sri Lanka has no shortage of entrepreneurial women. Until now it lacked a platform designed around how they actually need to trade.

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