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

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Textiles | On 20th Feb 2017

Sri Lanka's textile exports rise 2.3% in Jan-Oct '16

Exports of textiles and garments from Sri Lanka increased by 2.3 per...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search