Garment companies struggle to overcome US import watchdogs
VietNamNet Bridge, Vietnam
VietNamNet Bridge – Le Quoc An, president of Viet Nam Textile and Apparel Association, discusses US anti-dumping measures on Vietnamese garment exports with Thoi bao Kinh te Viet Nam (Viet Nam Economic Times).
How is the association dealing with the reduction of orders from the US due to the US Department of Commerce’s supervision mechanism on Vietnam’s garments?
The association is currently carrying out several courses of action to prevent order cancellations by US businesses.
We have appealed to the US Government to stop applying the supervision mechanism on Vietnamese garments and have requested international organisations to lobby on our behalf. The association has met with US businesses to persuade them to continue importing our products.
The association has told US importers that the Vietnamese Government will not let the worst-case scenario happen. If the anti-dumping tax is applied, a stop-gap measure has been introduced so that Vietnamese businesses will share 50% of the tax with US importers, at present the US Government levies the tax solely on importers.
So far several Vietnamese enterprises have signed agreements with their US customers but not all importers have yet agreed to the scheme.
The association has requested that Vietnamese businesses implement three solutions: make accounts clear and transparent; comply with international regulations; and limit low-price exports to the US market.
Do you think the DoC will implement any new protectionist policies against the Vietnamese garment industry this year?
The ministry has no plans to implement new policies but will review the results of the first six months application of the supervision mechanism, which means that anti-dumping taxes will probably be imposed.
The most important thing is that Vietnamese businesses persuade US importers to continue to sign orders for the remainder of the year. While the association and garment businesses are making strong efforts to achieve this, I am very concerned that the target of US$7bil turnover for the garment sector this year will be difficult to attain.
Could you explain in detail the supervision mechanism and how it impacts to Vietnamese garment sector?
The US adds up the import figures twice a year and the first six months results will be released in late August. We are nervously waiting their assessment, but I don’t think there will be a serious problem.
The growth rate of Vietnam’s exports to the US is not so high, only about 30%, similar to other countries.
When the US imposed quotas on Vietnam’s garment exports, the growth rate was 20% and when the quotas were cancelled, it grew to over 20%, which was to be expected.
Since quotas were eliminated prices have fluctuated as some products have increased or decreased in unit-cost but overall they have balanced out.
I think the DoC will consider the growth rate to be normal when they have the first half year’s figures.
Supervision is their business. I hope everything will be all right.
What do you say about the fact that many Vietnamese enterprises have lost orders from the US partners?
Orders have been cancelled because US importers are concerned that the US Government will introduce new measures when they review the first six months’ results.
Vietnam’s Ministry of Trade and the association have since met US importers to persuade them they have little to worry about and, currently, many have started re-ordering Vietnamese garments.
At present, to prevent the dumping of Vietnamese garment products in the US, both sides have also to carry out a self-supervision mechanism. Can you discuss the co-operation between the association and the relevant Vietnamese offices?
Currently, the Ministry of Trade and the Ministry of Industry in co-ordination with Customs, the Viet Nam Chamber for Commerce and Industry, and Viet Nam Textiles and Apparel Association have implemented a self-supervision programme by granting import certificates, valid for three months, to businesses so as to control data.
Unfortunately, only 80% of businesses have joined the programme so far. The ministries and associations are now discussing new and more effective measures.
(Source: Viet Nam News)
