The sector already has some existing structural problems, such as a heavy reliance on imported raw materials. However, a new problem may arise as barriers from Decrees and Circulars from relevant Ministries add extra difficulties. Will the industry be able to secure its future?
According to Circular 37 of the Ministry of Industry and Trade on testing the amount of dye used in the textile industry, all fabric imported for domestic consumption must be checked. The process is so complicated and expensive that it becomes a barrier for businesses.
Truong Tam, Director of Advance Nonwoven Vietnam Co. Ltd. said: "It takes three days to test each fabric sample and the cost is about 157 USD. We are asking the Ministry of Industry and Trade to reduce the frequency of product inspections".
In Da Nang, a representative of the Chamber of Commerce and Industry said that the costs for textile enterprises are rising because of the complex rules in product testing.
Nguyen Dien, Vice Director, Chamber of Commerce and Industry, Da Nang Branch said: "According to the opinions of textile and garment enterprises, Circular 37 is unnecessary. We need to eliminate those unnecessary provisions to help businesses reduce costs and improve competitiveness".
The Trans-Pacific Partnership (TPP) Free Trade Agreement is expected to bring great advantages for the textile and garment industry. But most Vietnamese textile enterprises won't receive those benefits because they are importing raw materials from countries not involved in the TPP. The unnecessary regulations simply add extra barriers for textile manufacturers entering the world market.
