Home / Knowledge / News / Textiles / Vietnam to levy import tax on PSF
Vietnam to levy import tax on PSF
06
May '15
Vietnam, which has so far allowed duty free import of polyester staple fibre (PSF) could charge a 2 per cent import tax following a proposal by the ministry of industry and trade to encourage domestic production, a Vietnamese newspaper has reported.

Aiming to rescue domestic fibre manufacturers facing harsh competition from imported fibre, the ministry plans to raise tax on staple fibre, coded 55.01, 55.02, 55.03, 55.04, 55.06 and 55.07, which are currently enjoying a zero tax rate.

According to the ministry, Vietnam imports around 150,000 tonnes of polyester fibre every year, while domestic producers do not run at full capacity.

One of the leading producers, PetroVietnam Petrochemical and Textile Fiber Joint Stock Company (PVTEX), runs only 50 per cent of its design capacity due to difficulties in selling owing to competition from imported products.

With plunging oil prices, the global price of the PSF has dropped sharply, forcing the PVTEX to lower the price of its fibre from $1,340 per tonne in August 2014 to $970. However, this has not improved its chance against importers. The current price cannot make up for production costs.

According to the ministry, it is important to encourage the use of domestic fibre to enhance the competitiveness of Vietnam's garment and textile industry, given that the country has been carrying out negotiations to join the Trans-Pacific Partnership (TPP), which requires a yarn-forward rule of origin for textiles and apparel. (SH)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 29th Apr 2017

Slight drop in Unifi 2017 Q3 sales

The net sales of Unifi Inc., one of the world's leading innovators in ...

Apparel/Garments | On 29th Apr 2017

US retail operating growth to be 1.5-2.5% in 2017: Moody's

The forecast for operating income growth in the US over the next 12...

Textiles | On 28th Apr 2017

India lifts CVD imposed on Nepali Jute goods

The countervailing duty (CVD) that was imposed on Nepali jute...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

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

Karan Arora
Karan Arora

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

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



X