Growing garment exports flirt with quotas
(12-07-2014)
Viet Nam News
HA NOI — Garment exports grew 33 per cent year-on-year in the first six months of this year, earning a total of US$2.7 billion, $1.4 billion of which came from the US market, reported the Viet Nam Textile and Apparel Association (Vitas).The majority of exports to the US fell under quotas, suggesting a likely quota shortage in later months of the year, according to Vitas chairman Le Quoc An.
However, An noted, the situation is not too serious because many enterprises have actively sought non-quota contracts from the US and other markets.
During the first half of the year, the textile and garment sector earned $350 million from the export of non-quota goods to the US, a rise of about 4 per cent over the same period last year. It was expected that non-quota exports would be higher in the second half.
If Viet Nam joins the WTO this year, the quota regime would be lifted, An said.
The industry’s greatest challenge was reducing its dependence on imported raw materials, accessories and machines, and it needed to attract foreign investors into these areas, An added. — VNS
