October 2007

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Apparel exports to US under dumping watch (Vietnam)

According to a latest report by US customs many Vietnamese apparel exports were put under dumping watch due to their low rates. As a result, Vietnamese Ministry of Industry and Trade has advised local textile exporters to focus on high-value apparel exports to US.

DOC data showed that of the eight Vietnamese apparel items placed under dumping watch by the department, shirts posted the highest rise of 31%. It further stated that Vietnam's apparel exports to the US rose by 20% to US $927 million in the first quarter this year. DOC started scrutinizing import of Vietnam textile and apparel products soon after lifting quotas following Vietnam's accession to the WTO in January 2007.

Chairman of the Vietnam Textile and Apparel Association (VITAS), Le Quoc An, has said that the apparel exports to the US this year will be at the adequate level. Mr. An has estimated, based on export turnover in the first five months of the year, that the apparel exports in June witnessed the growth rate of 25%. Last year, when the quota scheme was still applied, the average growth rate of apparel export to the US was 21%.

Regarding the export price, he said that the processing unit price remained firm, just witnessing slight decreases compared to last year’s levels though the processing fee could be lower thanks to the removal of the quota fee. The Ministry of Industry and Trade and Vitas together will try to access the officials’ circle of the US DOC to lobby to ease the barriers for Vietnam’s apparel exports. The country’s export target of $7.5 billion is still expected to be achieved as enterprises have been trying to expand export markets, while not relying heavily on the US market.

 
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