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'Made in China' goods cause headaches in domestic markets
Dec '08
China has been swamping worldwide markets with its “Made in China” products. This has been only made possible due to producing on mass scales, leading to cost competitiveness. But again, all products may not meet quality standards which have also led to the exit of a lot of products from international markets.

Some of these products, as Vietnam is witnessing, are available at just half the cost of the domestically manufactured products. The biggest sector to be affected is the textiles and garment sector. Since, most of the manufacturers were riding on the high growth generated from exports from this sector; the Chinese products have found their way in to most of the domestic markets.

Today, most of the shops selling textiles and clothing are per-dominantly stocked with Chinese goods. According to experts, sourcing of Chinese textiles, apparels and footwear is supposed to have grown from 20 percent to around 60 percent in recent years. The main matter of concern to the domestic industry is the lowering of duties from 50 percent to 20 percent once the WTO commitments come in to effect.

They foresee Vietnamese markets swamped with goods with “Made in China” tags once these duties are lowered. The other reason citied by experts is that China is on the prowl for new markets since exports to its traditional markets is witnessing a slowdown, and there is all the more reason for the country to limit exports from China by imposing trade barriers.

Otherwise they warn, the domestic manufacturers will be wiped out as has happened in case of some African countries and even the western countries, where exports of textiles and garments from China have increased drastically in recent years.

Fibre2fashion News Desk - Vietnam

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