WTO a plus for garment makers

Apparel companies have done an incredible job capitalising on the country’s WTO membership.

According to the Ministry of Industry and Trade, apparel exports expanded by 32 per cent since the country joined the trade organisation.

The sector earned a record US$11.2 billion in 2010, surpassing the profits made by the sell of crude oil, which is the country’s leading hard currency earner.

Such gains placed Viet Nam among the world’s top 10 apparel exporters.

In January 2007, the US abolished a quota mechanism for Vietnamese apparel, which allowed companies to expand their presence in the demanding market.

The US is the largest importer of Vietnamese apparel, which accounts for 55 per cent of the country’s export value. It is followed by the EU and Japan, where imports to both markets increased by 10 per cent.

The Most Favoured Nation (MFN) status has freed made-in-Viet Nam apparel from any kind of discriminatory treatment and enabled the country’s exports to compete equally with textile products from other WTO member countries.

To maintain their strong export growth rates, apparel producers needed to diversify their export lines and increase products added value, said Nguyen Son, deputy general secretary of the Viet Nam Apparel Association. —VNS

Tags: Vietnam garment exports, Vietnam Garment industry