New regulations facilitate garments, textiles

Minister of Industry and Trade Tran Tuan Anh signed to issue Circular 23/2016/TT-BCT in replacing Circular 37/2015/TT-BCT on regulating the acceptable levels of formaldehyde and aromatic amines derived from azo dyes in apparel materials. This positive move is seen as a solution to overcome difficulties for garment and textile businesses. 

Exports facing difficulties

The Vietnamese garment and textile sector reached US$21.11 billion in the export value in the first three months of the year, an increase of six percent compared to a year ago, the lowest growth in the last 10 years.

According to the Vietnam Textile & Apparel Association, difficulties in some key importers and the UK votes to leave the EU have made garment and textile orders plunged. In addition, Vietnamese garments and textiles have become more expensive due to Vietnam’s stabilization of the dong compared to some other currencies.

Song Hong Garment Joint Stock Company Chairman of Board of Directors Bui Duc Thinh said that an increase in the minimum wage and social, health and unemployment insurance costs in recent years has been a burden to businesses.

The scarcity of garment and textile orders has become quite popular. Therefore, the sector has to adjust this year’s export target from US$31 billion to US$29 billion, meaning that its export turnover must reach US$2.5 billion per month in the last quarter of the year.

Policies adjustment

The Vietnam Textile & Apparel Association proposed a series of solutions to overcome difficulties for its sector to the government, ministries and departments such as readjusting the garment and textile development planning as many backward targets in Prime Ministerial Decision 36/QD-TTg and the Ministry of Industry and Trade’s Decision 3218/QD-BCT.

In addition to the issuing of Circular 23/2016/TT-BCT, national technical regulations for garments and textiles are expected to be promulgated by early 2017. This is one of solutions to overcome difficulties for the garment and textile sector.

The Ministry of Industry and Trade will also adjust the garment and textile development planning to meet actual demand, especially when some new-generation free trade agreements take effect. The ministry agrees also with a recommendation regarding bonus for businesses that have well developed the domestic market and created many jobs for workers.

In terms of lifting regulations on banning production and exports of foreign military equipment and imposing the import duty on synthetic polyester staple fibers of two percent, the Ministry of Industry and Trade said that these fields are sensitive and would be subject to the current regulations.

Viet Nga / ven