Vietnam eyes $7 bln apparel exports
Source: Tuoi Tre Compiled by Dong Ha Date: 2007-01-10
The apparel export target of US$7 billion this year is achievable with the country’s WTO accession, the Vietnam Textile and Apparel Association (Vinatas) has said.
It was worth $6 billion last year.
Le Quoc An, Vinatas chairman, warned however that achieving the target was heavily dependent on enterprises’ competitiveness.
Following Vietnam’s recent WTO entry its exporters no longer had to contend with restrictive conditions in some giant markets like the US, and had the opportunity to expand exports.
Export tariffs on Vietnamese apparel would fall sharply.
Vietnamese products would enjoy a level playing field globally.
Foreign investment in the country’s textile industry would increase sharply.
Tough road
An emphasized, however, that a number of challenges lay ahead of the apparel industry.
It would have to face an influx of competitive products from China and India even at home after import tariffs on garments were cut to 20 percent from the current 50 percent; and on fabric to 12 percent from 40.
The trade ministry forecast Vietnam’s apparel export revenues from the US to double post-WTO.
The industry has vowed to set up a strict monitoring mechanism with focus on prices and control over some items that make up 60 percent of export to the US for fear of anti-dumping suits.
An warned that exporters should avoid excessive dependence on the US because of the high risk of such suits.
They should explore untapped markets like Japan and South Africa.
In order not to lose out at home, garment makers should focus on the distribution system and do market research to identify appropriate products.
Dang Quynh Doan, director of Viet Thy Company, said franchising would be a good idea, adding her firm was considering it.
