The Impact of Wto Accession on Textile Industry in Vietnam

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Abstract Vietnam has achieve notable export success in its textile and garment industry over the past decade. However, it still received many subsidies from the government, especially export subsidies which is prohibited in the international trade once Vietnam has been an official member of WTO. It is textile and garment industry that is one of the most difficult problem in negotiation process of bilateral agreement with US. So for such a dependent-on-government industry like textile and garment industry, what would happen after removing all preferences ? Whether they could survive ? What should they do to gain benefits in such a fierce competition after WTO accession ? That is the purpose of our paper. We hope that this paper con give…show more content…
This is a good news for us only when the problem of design is solved. 1.1.3 Opportunities Textile and garment industry has many chances of developing this year when more local suppliers of fabrics and accessories are establishing locally. When the source of materials is step by step stabilized, the cost of importing materials will reduce and the export value of the industry will climb up. As a result of long-established contact with customers, Vietnam’s manufacturers are increasing transfer of skills from buyers. We have received more and more orders in which customers decide materials, design and enjoy 5% to 10% value for each finished product. We do not just mention money here but the skill is of importance. After many orders from different customers, we can apply more new skills to deal with future contracts. Facts show that Vietnam produces 70% to 80% in the form of CMT( Cut, Make and Trim), which is of little value because of shortage of materials as well as low labor productivity. However, Ministry of Industry and Trade has proposed the policy of producing 1 billion meters of fabric and training human resources. Therefore, the industry now has opportunity to improve efficiency in CMT and move up value chain into FOB. Instead of producing “primitive” FOB( design and materials indicated by buyers), Vietnam has an object of focusing on developing real FOB: the manufacturer directly buy materials itself and sell finished
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