With import taxes on textiles and garments set to come down from 37.3% to 13.7% on average as part of Vietnam’s WTO Commitments, the sector will come under harsher foreign competition. Readymade clothes, which will see an import tax reduction from 50% to 20% beginning on January 1, would be seriously affected, said Chairman of the Viet Nam Textile and Apparel Association (VITAS) Le Quoc An.

Foreign competition would affect all three segments low, medium and high-quality products of the local garment sector. Tax reduction under the WTO is more serious than tax exemption given to ASEAN Free Trade Area (AFTA), said Director of the Private Viet Thy Co, Dang Quynh Doan. Many Vietnamese garment enterprises, including well-known trademarks such as An Phuoc, Viet Tien, Ninomax, Viet Thy, Nha Be, Phuong Dong, Viet Thang, expressed their worries ahead of severe competition during the post-WTO era.