WTO membership holds pros as well as cons, says Vitas

09 Nov '06

1 min read

In a recent interview with press, Le Quoc An, Chairman, Vietnam Textile and Apparel Association (Vitas), showed that the textile and apparel industry of the country would reap three favorable advantages, but face other three challenges once Vietnam officially enter WTO.

Advantages :

Industry will not be restricted by exports quota mechanism

Receive lower exporting tax to some markets and

Improved investments after WTO's accession to create more and more advantages for the industry.

However, An was concerned about three major challenges awaiting the industry of Vietnam :

Barrier protecting the domestic industry by import tax would be minimized in accordance with WTO's commitments (at present, imports tax for fabric is at 40 percent and 50 percent for clothes. These would be reduced to about 15 percent in the coming time).

Increasing difficulties in labor forces

More barriers from foreign partners to be set up, such as commitments within environment and anti–dumping lawsuit.

Of course, Vietnam would have advantages of official member of WTO against these three challenges, but it was very difficult to confront to powerful partners, An added.

For futher information on EU's support for WTO membership, click here.

Fibre2fashion, News Desk - Vietnam

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