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Vietnam Textile and self-improvement opportunities
Updated: 25.10.2013 01:46 - Views: 4,359
To reach an agreement with the 0% tax rate for large markets, the textile sector requires Vietnam to overcome the heterogeneity between development stages from fiber-textile-dyeing-finishing and sewing.

Morning of 6/9, in Da Nang, symposium held to discuss the impact of the Strategic Partnership Agreement Trans-Pacific (TPP) for the textile sector.



Large market - more challenge

Currently, the EU countries accounted for 50%, 30% TPP total exports Textile Vietnam, followed by Japan and South Korea. However, the current tax rate in the U.S. and EU markets for Vietnam Textile industry is very high: U.S. 17.5%, EU 9.6%.

Over time, the government is trying to open the door Textile exports to Vietnam by accelerating the negotiation process involved in the Strategic Partnership Agreement Trans-Pacific (TPP) free trade agreement by the EU and free trade agreements with South Korea to take the 0% tax rate.

Mr. Nguyen Dinh Truong, VITAS vice president, said: "TPP will create large and even massive offers important motivation for the development of the Vietnam Textile and Garment, Textile Vietnam contributed to rise to greater heights in the near future. "

However, in order to enjoy 0% tax rate, the textile enterprises to adopt more stringent regulations that formula "yarn forward" with the phases from the spinning-weaving-dyeing-finished and may have to be made ​​in the TPP member countries. This has caused problems for Vietnamese textiles by textile-dye-segment completed in developing countries have weak, becomes a bottleneck hinders the industry.

Currently 70% of textile exports of Vietnam are made ​​by the method of CMT (cut-assembly-complete), with 88% of raw materials (mainly cloth) to be imported from abroad, the majority of This country is not in the TPP. In addition, equipment and technology to keep up with other countries, making outsourcing cheap competitive advantages are emerging in the textile industry encroaching.

At the same time, a great challenge for the domestic garment enterprises as labor standards and the environment of the TPP is quite high, especially in the textile-dyeing stage. If textile enterprises violate these standards may be tax arrears against the shipments were exempt or subject to a lawsuit and not continue to export to the TPP member countries as well.

Find directions joining the large playground

To solve the problems, the parties negotiate interim solution proposed "supply shortage" (supplying short list) in the given period (3 years). Thereby, the TPP countries to continue buying TPP materials that produce less or no external TPP to produce garments. However, the deadline to apply force on the formula "yarn forward".

This initiative is seen as a driving force to help promote the production of textiles (including spinning) within the TPP but especially in Vietnam.

According to Nguyen Van Tuan, Deputy General Secretary of Vietnam Textile and Apparel Association, developing solutions to stabilize the Vietnam join the TPP is not actively linked to string resources, technology and equipment market, the invest in on-dyeing-weaving is complete, value-added processing by decreasing; market continues to expand and develop the fashion garment industry.

Tuan said that the Government should have a clear strategy to develop regional planning textile, dyeing, especially when many localities no longer keen on this stage. In addition, employees have the technical resources to be re-trained to participate in the development of comprehensive textile sector of Vietnam.

"In general the development trend of the industry is inevitable textile world, if we do not face it, and it will exploit its rejection," Tuan said.

To become a vital link in the supply chain world textile industry, many participants in the conference, said that the immediate need to focus on promoting the development of ancillary industries for the production of raw materials for industry in the country, instead of imported materials; design industry needs to be strengthened and upgraded.

Besides, the textile business to quickly convert traditional machining methods CMT (cut-assembly-complete) to the FOB (business to implement the whole production process from market research trunks and boxes to package delivery), thereby contributing to the localization rate, reduce imports, reduce production costs, decrease reliance on outside.

Mr. Nguyen Van Tuan said VITAS ongoing survey for 6 domains, including market, raw materials, labor, equipment, management and financial affairs of the domestic textile enterprises to be detailed data synthesis to continue to participate in negotiations. 

According to Government
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