WTO accession – opportunities & challenges for garment biz
22 May '06
1 min read
Opportunities as well as challenges are looming large over textile and garment industry as the country is to join WTO.
Anti-dumping duties imposed by the US on some Vietnamese textile and garment products since 2003 will be lifted.
This will be a golden opportunity for sector, said Bui Xuan Khu, Deputy Industry Minister.
As WTO membership would make Vietnam's investment environment healthier, local companies would receive more orders from other countries.
This will boost textile and garment exports and encourage enterprises to invest in expansion, he added.
However, according to industry experts, exports to the US may not flourish once the quotas are lifted.
After a similar move by the European Union, exports to that market actually declined.
Khu admitted that some Vietnamese products were less competitive than those from other countries, and added that country might encounter the same situation in the US.
Following WTO accession, Government subsidies for the textile and garment sector would come to an end.
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