As the opportunities become more limited for Chinese exports to the US and EU markets, it will rely on Vietnam by ordering Vietnamese enterprises to complete export contracts which they have already signed with US importers, and export to the US under the quotas the US grants to Vietnam.
An official of the Vietnam Chamber of Commerce and IndustryTran Thi Thu Huong studying the situation warned and asked Vietnamese enterprises resort to such unfair practices or else face punishment to the extent of the US abolishing export quotas to Vietnam in the coming three years.
According to the Vietnam Association of Garments and Textiles, when exports from China are controlled, the beneficiaries will be competitive regional rivals, including India, Bangladesh, Indonesia and Pakistan. Because these countries are already members of the World Trade Organisation (WTO), they are not subjects to quotas. Meanwhile, Vietnam, which is not yet a member of the WTO, still suffers from quotas restriction from the US. So, the quota re-imposition from China is only a little advantage for Vietnamese garment and textile products to access the US market.
In addition, while applying quotas to China, the US and EU are also considering exempting import tax for garment and textile products from tsunami-affected countries like Thailand, Indonesia, and India.This means that Vietnam will confront new competition from tsunami-hit countries in the US and EU markets.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
