Yue reports that Chinese textiles will occupy the market share in Vietnam

According to the Vietnam Textile Association, in 2010, the Vietnamese textile industry spent a total of US$9 billion to import raw materials for production. Vietnam’s textiles’ share in the domestic market increased by 20%, but the growth was not stable. Mainly because of the rise in raw material prices at the beginning of this year, many textile companies have only focused on completing export orders (because the import tax on raw materials used for the production of textiles is zero), but they have significantly reduced production for the domestic market. If textile manufacturers do not receive tax rebates on imports of raw materials, Chinese textiles are very likely to squeeze the Vietnamese market.

Reported that since the beginning of this year, the price of cotton yarn in Vietnam has risen by 50-60%, and the quantity can only meet the needs of 50% of the market. At the same time, imported raw materials are subject to a 12% import tax, resulting in no profit for the company’s products sold on the domestic market. To this end, Vietnamese textile companies expect the government to reduce the import tax on raw materials in order to increase the domestic competitiveness of its products.

It is reported that the Vietnamese aquaculture industry also needs a large amount of imported raw materials, and it is required to pay an import tax of 10-20, while the import taxes for raw materials used in the aquaculture industry in China, Thailand, India, and Malaysia are 0-0.5%, in order to increase Vietnam. The international competitiveness of aquatic products, Vietnamese aquaculture companies also called on the government to reduce its import tax on raw materials.