However, it is rather sudden when the United States solely promulgated to carry out a strict monitoring mechanism on Vietnamese textile apparel since January 11, 2007. The danger? various articles of Vietnamese textile apparel? for export to the United States would be? antidumping (AD) investigated is coming quite near.
Growth in worry
The statistics record from the Ministry of Trade, in the two beginning months of the year 2007, textile apparel export grows rather vigorously compared to the same period of 2006, with the export turnover at 1.016 billion USD,? only rank after petroleum and gas sector by an amount of 44 million USD and surpasses rather far the third goods sector as footwares by an amount up to 356 million USD.
To comment on these figures, Mr. L? Viết T?a, Deputy General director of Viettien Garment Company said that we have just accessed to WTO for only more than 2 months, therefore, the growth of textile apparel industry would not be able to state exactly what thing yet, because the danger the United States to initiate AD investigations is also getting near. " We have still a lot of work to resolve proactively, if do not want 50% of? enterprises in the sector should go bankruptcy in 2010" - Mr.T?a judges.
Similarly, Mr. Diệp Th?nh Kiệt, Vice Chairman of the Association for Textiles, Garment, Embroidery and Knitting, Ho Chi Minh City, worries, the rapid export growth of textile apparel industry has led to competition between enterprises on production resources that is naturally lessening, such as land, workshop, worker resources... Aside to this, despite Vietnamese textile apparel commodities are no longer subject to quotas on export to the United States market, but under pressure of local manufacturers, the U.S. Department of Commerce has introduced a new barrier, which set an AD monitoring mechanism towards Vietnamese textile apparel export to the United States with the aim to initiate AD investigations, the extremely fast export growth to this market is? just a pretext for their reactions.
Vice Minister of the Ministry of Trade, Mr. L? Danh Vĩnh also judges that the U.S. side is collecting opinions of the relevant sides in order to carry out monitoring mechanism on Vietnamese textile apparel goods into the United States. According to this mechanism, the probe would be realised once for a period of 6 months and in worst case, they would automatically initiate AD investigations towards a single or plurality of textile apparel items from Vietnam.
Application of temporary export administration mechanism
Under such above circumstances, the InterMinistries of Trade? and Industry has determined to apply administration mechanism on textile apparel export to the United states in the direction to monitor textile apparel articles that the U.S. estimates to monitor. The aim of this mechanism is to intensify importers' confidence, to boost export goods' value, to minimise the simple goods lots with lower unit prices, to manage well the export growth process, anti-illegal transhipment and commercial fraudulences... Temporarily the Ministry of Trade would grant export license E/L for the? lots of export goods to the United States since the date of March 15, 2007. In this, 5 groups of textile apparel products that would be monitored consist of: shirt, long pants, swimming wears, underwears and sweater. Depending upon every period of time, the InterMinistries could adjust and move to monitor the commodity codes (HS) and category (cat) when condition allows.
Vice Minister L? Danh Vĩnh affirms, it's very simple to grant E/L, free of charge and will not cause any trouble for enterprises. The State never intends to limit export volumes of enterprises, who will be reassured to receive big orders. However, in order to minimise the simple lots of goods with lower unit prices, to manage well in the process of export growth, the InterMinistries would generalise, negotiate to guide enterprises and Vietnam Textile and Apparel Association in order to treat individual concrete case, to avoid affecting to a majority of true business enterprises. In case the data of categories does not have a sudden change in export quantity and plunge in export price, enterprises would still be able to export the lots of goods with simple design and styles, cheap prices.
According to the lawer David Luff, consultant to the Multi-Trade Project (Mutrap), the Vietnamese Government would need to examine immediately the criteria to be admitted and treated in a manner of market economy and prepare in advance the documents following to this direction. To prepare in advance on the determination way on the basis of a similar third country and arguments in order to be accepted for an investigation way to similar competition conditions which are most beneficial to enterprises. As for Association, it would be necessary fastly to hire international lawers, who would be competent in debating on the issues relating to AD and dispute settlement process in WTO...?
So, beside the efforts from the ministries, industries, each enterprise would need to diversify products, maximise the markets, closely collaborate between enterprises with Textile and Apparel Association and with stakeholder importers in order to take advantage of the support, aimed at lessening loss at the lowest level.
