Vietnam aims to earn apparel exports of US$7 billion in 2007 with the country’s WTO accession, compared with over US$5.8 billion in 2006, the Vietnam Textile and Apparel Association (Vitas) said.
However, Vitas chairman, Le Quoc An, warned that achieving the target was heavily dependent on enterprises’ competitiveness.
Following Vietnam’s recent WTO entry, exporters no longer have to contend with restrictive conditions in some giant markets like the US, and have the opportunity to expand exports.
An noted, however, that a number of challenges lay ahead in the apparel industry.
It would have to face an influx of competitive products from China and India, even at home, after garment import tariffs are cut to 20 per cent from the current 50 per cent, and fabric tariffs to 12 per cent from 40.
The Ministry of Trade predicted Vietnam’s apparel export revenues from the US to double post-WTO.
The industry vowed to set up a strict monitoring mechanism with focus on prices and control over items making up 60 per cent of export to the US, for fear of anti-dumping suits.
An suggested they explore untapped markets like Japan and South Africa, in order to avoid excessive dependence on the US with a high risk of such suits.
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.
Young People
Vietnamese
