Subsidies to garment sector abolished by new regulations
08 Jun '06
1 min read
Subsidies given by state to textile and garment industry will be ended by new regulations issued last week, stated Le Quoc An, Chairman, Vietnam Textile & Garment Association.
Explaining this, An said that after obtaining WTO membership, it is mandatory for Vietnam to abolish subsidies to textile and garment.
Industry imports fabrics, garment-making accessories, machinery, technologies, and chemicals, and all this at high costs.
Competition in the domestic market will also become fiercer as duties on imported textiles and garments will be reduced from the current 40 to 50 percent to 10 to 15 percent.
However, competitors would also have easy access to advanced technology and management skill of international level, he opined.
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