September 28, 2017 | 22:20 (GMT+7)
Ministry drafts legal amendments to aid local garment exporters
The Ministry of Industry and Trade is drafting legal amendments to help domestic garment producers cut costs and reduce administration burdens amid many difficulties facing the industry this year.
According
to the Ministry of Industry and Trade, the global demand for textiles and
garments fell in the first eight months of 2017. Wages for workers and
logistics costs have been rising, putting local garment exporters under
pressure, particularly in the face of fierce competition from regional rivals
like Bangladesh, Myanmar and Cambodia.
Garment
makers from these countries have greatly benefited from their governments’
preferential policies that included tax cuts and currency devaluation to boost
exports. They have also enjoyed favorable treatment from the US and the
European Union (EU).
According
to Chairman of the Vietnam Textile and Apparel Association Vu Duc Giang, the
sector aims to export about USD 30 billion worth of textiles and garments in
2017. The US is expected to be the biggest buyer, accounting for 50 percent of
exports, followed by the EU (20.5 percent), Japan (19.5 percent), and the
Republic of Korea (7.5 percent).
Though
the country’s exports rose by 9.9 percent in the first eight months of this
year to USD 19.8 billion, the ministry worries the export target may not be met
as there will not be many big orders for the remaining months.
The
ministry asked domestic producers to join foreign supermarket chains in Vietnam
and attend overseas product promotion and business-matching events.
It
also asked state agencies to support domestic textiles and garment exporters in
administrative procedures to help them overcome obstacles.
Source: VNA