GSP scheme may not encompass domestic footwear sector

14 Apr '08

2 min read

Footwear, the major industry of Vietnam has boarded a ship which is sailing through a turbulent sea.

Despite, urges made by the Federation of the European Sporting Goods Industry, the European Commission is considering removal of shoe industry from its General System of Preference (GSP) on the pretext that the country is strong enough to stand competition without any help.

Removal of GSP preferences for footwear would be a big blow to the country and would substantially undermine the country's position as a competitive source of supply.

Vietnam on in its turn held a meeting on April 8 at Ho Chi Minh City where authorities decided to send a petition to the European Commission protesting against removal of GSP for the country's footwear sector.

Infact, a protest was also voiced by popular brands like Nike and Adidas who have their footwear production base in Vietnam.

If the change is brought about, Shoes exports from Vietnam would face higher tariffs. The decision followed after Vietnam widened its range of products for exports to the EU. Some of the European countries including Italy had awaited this decision for a long time to protect their own domestic shoes industry.

The final meeting for this issue will be held in June and if the removal of GSP for Vietnam is approved, the act will be implemented with effect from August 31 this year.

Strategies are also being planned by the Vietnamese Ministry of Industry and Trade for preventing such an implementation.

Fibre2fashion News Desk - Vietnam

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