Home / Knowledge / News / Apparel/Garments / 'Lower import duty on raw material imports' – Garment producers
'Lower import duty on raw material imports' – Garment producers
25
Mar '11
In Vietnam, garment and seafood companies have appealed the government to lower the tariffs on import materials to make them more competitive in the domestic market.

Because of high import duty and price rise of cotton fiber, companies are facing very hard time, losing grounds in domestic as well as international markets.

They have warned the government that, China could capture the domestic market too, taking benefit of the situation. They have demanded low tax rates of 0-0.5 percent on imports.

At present, import duty on input materials for garments is as high as 12 percent. In addition to that, because of shortage, domestic cotton fiber prices have increased by 50-60 percent.

Due to this adversity, companies are not able to buy enough input materials. Though both garment companies have big orders from their foreign partners, it is not possible for them to fulfill those orders, nor is it profitable.

They are really struggling to procure input material to fulfill their orders as the volume of available fiber is enough to meet 50 percent of their needs only.

Due to this problem, companies in Viet Thang region, have stopped production for domestic consumption since the beginning of the year, since they have to fulfill their foreign commitments.

In 2010, import bill of garment companies was nine billion dollars which mainly constituted raw materials. They have also gradually regained control on domestic market, in growing by around 20 percent.

But now, they are loosing the ground. In this situation, Chinese garment products can occupy the domestic market again. To avert such scenario, tax on import materials must be lowered, say experts.

On the other hand, some experts have warned against lowering tariffs. They believe that the companies will prefer importing materials, leading to a drop in investments in the textiles raw material industry and will also affect domestic producers badly, they fear.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 27th Apr 2017

Boohoo's revenue increases 51% to reach £294.6 mn

Fashion e-commerce marketplace Boohoo has recorded a 51 per cent...

Apparel/Garments | On 27th Apr 2017

Amazon catching up with Flipkart in India: RedSeer

Online marketplace Amazon India has caught up with its biggest rival...

Textiles | On 27th Apr 2017

Seven new organisations join ZDHC Programme

The Zero Discharge of Hazardous Chemicals (ZDHC) Programme from...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search