WTO accession to adversely affect textile industry
24 Oct '06
2 min read
Vietnam's accession to WTO is scheduled for November this year, which is being appreciated by some enterprises and feared by others.
Developing retail sector has been stirred by the approaching WTO entry and it has been in a hurry in last six months to open convenient stores and shopping malls.
But the sector's efforts were partially hindered by staff shortage, informed Nguyen Ngoc Hoa, General Director, Saigon Co.op based in Ho Chi Minh City. Saigon runs total 16 stores with 13 in HCMC and one each in Can Tho, My Tho and Binh Dinh.
Saigon will launch 50 new stores in HCMC this year and double this figure by 2007. As per expansion plans, Co.op Mart will open 100 superstores and 100 outlets by 2015.
Experts of textile industry are concerned about the exports to US being reduced as US quotas for Vietnamese apparel will be cancelled due to WTO accession. They said local companies will face tough competition as foreign firms will try to develop trade here, and import taxes on apparel will be laid off.
WTO entry is anticipated to enhance Vietnam's furniture industry. As the industry gets its profits mainly from exports, the entry will increase markets, said Tran Quoc Tuan, Director, Sadaco which is a furniture maker based in HCMC.
Tran added that WTO membership will prove relevant for the industry as export taxes on Vietnam's wood products and import duties on raw materials will be sliced.
marketing@alchempro.com
