Textile-garment Sector: Meeting WTO Standards

Textile-garment Sector: Meeting WTO Standards

In the first half of 2004 the Vietnamese textile-garment sector attained its export target. However, it is now facing difficulties in quota limitations. VIB Forum heard Mr. Le Quoc An’s views on the situation, the chairman of Vietnam Textile and Garment Association.

The textile-garment sector has made important contributions to Vietnam’s export revenues in recent years. Will it continue its successes in the next six months?

The textile-garment sector is facing big obstacles from quota limitations and is also under strong pressure from China and India. Currently, the Vietnam Textile-Garment Corporation and the association are negotiating with the Trade Ministry on quota allocation, who have offered two alternatives. I personally think that Vietnamese enterprises should also expand into non-quota markets such as the Republic of Korea, and Japan.

It is almost certain that Vietnam will join the WTO. However, some believe that this will increase difficulties, especially to the textile-garment sector. Do you share their view?

Without WTO membership, Vietnam will have more difficulties due to the present quota limitations. Once Vietnam joins the WTO, this problem will no longer exist, but the competition will be harsher with the inflow of products from other countries. Therefore, Vietnamese enterprises must now develop business strategies and planning to maintain the domestic market share. with its reputable trademarks, such as Viet Tien, Garment 10, Phuong Dong and Viet Hung, which hold important market shares and credibility. I believe that small and medium enterprises (SMEs) can increase their skills and management in order to attract major clients because these companies always have the advantages in management.

How can enterprises prepare for economic integration and what measures should be taken to assist the Vietnamese textile-garment industry?          

In preparation for economic integration, corporations and associations, in cooperation with the Trade Ministry, are conducting trade promotion activities for the textile-garment sector, including the International VFF 2004 Trade Fair introducing Vietnamese textile and garments to foreign partners. Proposals have been submitted for the approval of the government on 11 textile-garment industrial zones and three commercial centres. In 2005, the government will encourage and assist Vietnamese garment exporters to shift from contractual production to FOB products with local materials.

• Reported by Doanh Thu