Apparel and clothing items produced in Vietnam with South Korea-made fabrics will be allowed to enjoy lower tariffs in the European Union, the trade ministry said Monday.

Previously, clothes needed to be made with locally produced fabrics in order to enjoy the benefits of the Vietnam-EU free trade agreement, according to the Ministry of Trade, Industry and Energy.

"With South Korea being the second-largest supplier of fabric in Vietnam, the latest policy will lead to stronger demand for South Korean products, compared with other rivals such as China and Taiwan," the ministry said in a statement.

Vietnam relies on imports for 80 percent of its demand for textiles.

In 2019, China accounted for 55 percent of Vietnam's imports of fabrics, trailed by South Korea and Taiwan with 16 percent and 12 percent, respectively. Japan accounted for 6 percent.

Last year, South Korea's shipments of fabrics to Vietnam came to $2.35 billion, down 18.4 percent on-year. (Yonhap)