A meeting was held among Ministries of Trade and Industry and the Viet Nam Textile and Apparel Association deliberated with clothing producers on ways of proper allocation of the remaining exports quotas to US for last two months of year.
Special attention was given on two categories like cotton-knit shirts and cotton trousers. US firm JC Penny Co had already moved its cotton-knit shirt orders to China after the apprehensions that Vietnamese manufacturers may not have quota for US-bound shipments.
The company further plans to move to China if the system of quota allocation in Vietnam does not show improvement affecting the Vietnamese apparel industry negatively. The volume of unused quota for cotton-knit and cotton trousers has reached a staggering figure of four million dozen.
Inappropriate quota distribution system has created a situation in which the companies who have capacity to ship goods to US do not have quota and the ones who have are facing the prospect of not achieving contracts.
Le Quoc An, Chairman of Viet Nam Textile and Apparel Association (Vitas) suggested that companies who have not used quotas should get themselves re-registered with quota management board by early November. The process should consist of volume of export goods, name of customers, contact numbers and goods delivery date.
An further emphasized that if companies fail to utilize 90%of their allotted quota, they must be liable for financial penalties. An suggested that quotas which remain unutilized should be diverted to exporters. Garments worth US$1.78 billion have been exported to US market by Vietnam till now.
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