Viet Nam urged to apply licences on garment exports to US

Viet Nam urged to apply licences on garment exports to US
07:32′ 14/02/2014 (GMT+7)
VietNamNet Bridge, Vietnam

Christopher Muessel, Chairman of the American Chamber of Commerce in Viet Nam, has suggested that Viet Nam immediately adopt an export licence requirement for apparel exports to the US to prevent companies outside the country from falsely claiming that their apparel is of Vietnamese origin.

Muessel put forth the suggestion in a recent letter concerning Viet Nam-US apparel trade after the former’s WTO entry addressed to leaders of relevant Vietnamese ministries, the Ha Noi-based US Embassy and the US Consulate General in Ho Chi Minh City, and the Viet Nam Textile and Garment Association.

The AmCham official said the application of export licences would allow the Vietnamese Ministry of Trade to monitor closely the average unit value prices of apparel products and have data well before the US Government tabulates such data from collection of import data at US ports of entry.

He proposed the Ministry of Trade address concerns of US importers about the US “Import Monitoring Porgramme” and the risk of self-initiated anti-dumping investigations by the US Government, which, he said could create a lot of uncertainty and business risks, that it could discourage textile and garment exports from Viet Nam.

In addition, relevant Vietnamese ministries and agencies need to track “sensitive categories” of apparel products (trousers, shirts, underwear, swimwear, sweaters) through the use of export licences.

He believed that the initiative would encourage garment factories to produce goods for the US market and attract high unit value orders, which require greater skills, more sophisticated workmanship and greater capital investment over time.

This will ensure that the Vietnamese apparel industry will continue its reputation as a high “value added” production platform.

Muessel revealed that most US customers judged that Viet Nam managed its quota allocation better than any other country in the past two years by implementing a more professional, transparent and efficient system. Therefore they believed that an export licence progamme would be run in a similar fashion.

However, the AmCham Chairman warned that, unless the Ministry of Trade takes prompt and positive action on a transparent, efficient and fair basis, most or all major US apparel importers will begin their plans to leave Viet Nam, which they have already prepared as business contingency.

(Source: VNA)

Post Author: Indonesia Grament