Imminent entry of Vietnam in World Trade Organization (WTO) has sent cold waves down the spine of textiles and garment industry since post WTO entry, high import duty of 50 and 40 percent is to be lowered to 15 percent making them cheaper for import.
Commitment to WTO would make entry of apparel in Vietnam easy with 70 percent of raw materials for clothing and 85 percent of equipment is already imported as Vietnam lags behind in technology.
Ho Chi Minh City Textile and Garment Association Deputy Chairman, Diep Thanh Kiet, listed out several advantages of foreign-made clothes such as giant trademarks, high quality and abundant designs.
Ho Thu Ha, General Director of Phuoc Long Textile Company, said that lack of funds prohibit companies from intensive investment in technology, which has kept them lagging behind.
Even as export to US has increased quantum has been low and Vietnam is not facing competition from ASEAN but from countries like Taiwan, Pakistan, India, South Korea and China in particular.
One of the biggest hindrances Vietnam faces is that the companies have reached their optimum and growth rate just cannot be improved in a hurry. This is a pity as US is scheduled to limit inflow of Chinese products from 2008, opening the gates for other countries such as Vietnam.
Experts have suggested that quality and quantity are the way to stand in the race whether textiles, garments or footwear.
Vietnam is scheduled to implement two fibre and yarn material production projects which are projected as the future of Vietnam.
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