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Apparel exporters receive shot in the arm from Oct 1
Oct '09
The Vietnamese textiles and apparels sector is set to receive a boost beginning from October 1. From now onwards exports from the sector to Japan will be subject to zero rating. This is part of the FTA, Vietnam signed with Japan early this year.

The implications of this status are many. According to statistics of VITAS, 80 percent of the apparel exporters have managed to secure orders to help them run their units, through this year, 40 percent of which are from Japan.

Currently, Chinese textile and apparel exporters hold nearly 80 percent market share in Japan, which is the third biggest market in the world after the US and EU, and this share will come under considerable stress, as Vietnamese products will prove to be cheaper.

Exports from the sector to Japan have been rising steadily and had grown to US $820 million in 2008, accounting for 9 percent of its total earnings and now despite the global crisis, it touched $605 million in the first eight months of 2009, up 15 percent year-on-year.

Fibre2fashion News Desk - India

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