Apparel sector races to hit targets
Apparel sector races to hit targets
The textile and garment sector will take several measures to achieve its export target this year, according to the Viet Nam Textile and Apparel Association (Vitas).
Exports in the first nine months were worth US$10 billion, a year-on-year increase of seven per cent, but concerted efforts are indeed required to hit the target of $17-18 billion, it said.
The industry faces certain difficulties that will significantly affect production and trading, and serious efforts are needed to resolve them soon.
They include an ongoing dispute between Vietnamese textile firms and US cotton merchants – which could affect their purchase of cotton – and a Ministry of Finance plan to scrap the 275-day grace period for tax payment they currently enjoy.
The ministry plans to amend regulations to force companies to pay tax before customs clearance. The change will apply to firms that do sub-contract work for foreign partners and those that import products for re-export.
Without the grace period, production costs are expected to increase by 8-16 per cent.
Vitas vice chairman Le Tien Truong said the association has petitioned the ministry not to effect the change. It has also told its members to strengthen sales promotion abroad to consolidate existing markets and expand into new ones.
The Viet Nam National Textile Garment Group (Vinatex) will help its member companies explore ways to enter promising new markets like South Korea and Canada, and promote sales of fibre products to China, the Middle East, Turkey, and Africa.
The industry will intensify investment to upgrade fabric factories to ensure supply of quality material for exports.
A large polyester yarn production programme will be undertaken to meet 70-80 per cent of domestic demand by 2015.
If the programme is successful it will help the industry add value to textile and garment products.
Up-to-date information will be provided to textile firms about market fluctuations, changes in polices, and quality control in overseas markets so that they can make timely adjustments to their production plans.
In an attempt to help the industry, the Ministry of Trade and Industry is launching several sales promotion programmes, especially in promising markets like Hong Kong, Thailand, and Malaysia.
vietnamnews
