Illustrative image (Source: VNA) Hanoi (VNA) –Many Vietnamese garment firms have maintained high growth intraditional markets this year, including the US, the Republic of Korea, theEuropean Union and member states of the Comprehensive and Progressive Agreementfor Trans-Pacific Partnership (CPTPP).
VicePresident and General Secretary of the Vietnam Textile and Apparel Association(VITAS) Truong Van Cam said a series of recently-signed free trade agreements (FTAs)is expected to boost the sector.
Since2001, Vietnam has signed bilateral trade agreements with the US, Japan, China,the Republic of Korea, Australia, New Zealand and India, and joined the WorldTrade Organisation.
However,global demand for textiles and apparels only grows by 1-2 percent each year,resulting in fierce competition, he said.
Accordingto him, most FTAs have rules on product origin for fibre and fabrics whileVietnam imports up to 80 percent of materials.
Atpresent, Bangladesh cuts corporate tax to 20 percent from 35 percent andlinenfiber and spandex import tax from 10 percent to 5 percent. Pakistan waivesmaterial and energy taxes for exported apparel while India reduces fibre importtax to 2.5 percent from 5 percent.
TheEU offers zero percent tax to apparel from Cambodia and Myanmar while the US waivestax for several Cambodia goods. Vietnamese apparels are still subject to 17.7percent and 9.6 percent tax when exporting to the US and the EU, respectively.
VITAScalled on the State to devise planning and grant licences to major garmentindustrial areas to attract investment in weaving and dyeing.
Italso urged supporting wastewater treatment in industrial zones and discouragingforeign firmsfrom investing in fiber and sewing.-VNA
VicePresident and General Secretary of the Vietnam Textile and Apparel Association(VITAS) Truong Van Cam said a series of recently-signed free trade agreements (FTAs)is expected to boost the sector.
Since2001, Vietnam has signed bilateral trade agreements with the US, Japan, China,the Republic of Korea, Australia, New Zealand and India, and joined the WorldTrade Organisation.
However,global demand for textiles and apparels only grows by 1-2 percent each year,resulting in fierce competition, he said.
Accordingto him, most FTAs have rules on product origin for fibre and fabrics whileVietnam imports up to 80 percent of materials.
Atpresent, Bangladesh cuts corporate tax to 20 percent from 35 percent andlinenfiber and spandex import tax from 10 percent to 5 percent. Pakistan waivesmaterial and energy taxes for exported apparel while India reduces fibre importtax to 2.5 percent from 5 percent.
TheEU offers zero percent tax to apparel from Cambodia and Myanmar while the US waivestax for several Cambodia goods. Vietnamese apparels are still subject to 17.7percent and 9.6 percent tax when exporting to the US and the EU, respectively.
VITAScalled on the State to devise planning and grant licences to major garmentindustrial areas to attract investment in weaving and dyeing.
Italso urged supporting wastewater treatment in industrial zones and discouragingforeign firmsfrom investing in fiber and sewing.-VNA
VNA
