VITAS wants to remove difficulties for textile and garment exporters

VITAS wants to remove difficulties for textile and garment exporters

Vietnam's textile industry has appealed to the country's government not to impose import tariffs on polyester fibre, saying the move would add to the challenges facing textile and garment exporters.

The Vietnam Textile and Apparel Association (VITAS) has written to the Ministry of Finance and the Ministry of Industry and Trade urging them to abstain from lifting import tariffs from 0% to 2%.

According to VITAS, companies have to import raw materials to produce goods domestically, yet some are being forced to close due to the high cost and expense.

VITAS has also proposed the government consider adjusting the insurance premium rates paid by firms to a more reasonable level, so that enterprises can improve their competitiveness to expand production, and revisit the tax law on the import of raw materials for fabric production.

Also recommended was an amendment of Decree 60/2014/NÐ-CP stipulating the conditions for licensing importers of printers for textile and garment products.

"The owner of the enterprise must have a college diploma or higher in the printing industry or be issued a certificate of professional training in print management by the Ministry of Information and Communication," VITAS says.

In the first six months of the year, Vietnam's textile and garment exports are estimated at US$14.1bn, up 10% over the same period of 2016, while imports are up 16.27% to $9.5bn.

VITAS is also opposing a proposed 6.5% increase in the minimum wage from the beginning of next year, saying the move will reduce competition, shift the labour structure and prevent expansion.

The country's minimum wage has increased by 21.8% over the last decade for domestic enterprises and 15% for foreign enterprises, and will rise to between VND2.76m and VND3.98m ($121-175) per month from next year. 

Vietnam apparel sector opposes proposed wage hike