[Vnbiz] US IMPORTERS DELAY BUYING VIETNAM GARMENTS

[Phan, Tai]

US IMPORTERS DELAY BUYING VIETNAM GARMENTS

Monday June 11, 2007, 1:47 pm
 


HANOI, June 11 Asia Pulse - Many US companies have postponed new contracts with Vietnamese textile and garment exporters until August, when the US Department of Commerce (DoC) will announce the results of its review of local exporters' trade commitments, according to the Vietnam Textile and Garment Association.

The DoC began monitoring imports of textile and apparel products after Vietnam joined the World Trade Organisation in January. ADVERTISEMENT
 
 

"The monitoring programme not only damages Vietnam's textile and garment sector but also causes loss to American customers," said the chairman of the Vietnam Textile and Garment Association, Le Quoc An.

The first announcement of the biannual review will be made in August and the next in March.

Vietnam's trade ministry has asked the US to consider removing the monitoring scheme, which was created to make sure that Vietnam was not dumping its textile products on overseas markets.

To reach the targeted exports of US$7.3 billion for 2007, Vietnam's apparel exports were set to grow by 27 per cent this year, the trade ministry says.

In the first five months of this year, exports increased by 24.3 per cent, an average $537 million per month. The Trade Ministry said at this rate the country's textile exports could reach $6.5 billion this year.

A Vinatex official said the US was the largest importer, accounting for 55 per cent of Vietnam's textile shipments, and that the US monitoring programme would prevent the sector from reaching its goal.

Diep Thanh Kiet, deputy chairman of the HCM City Knitting, Embroidery and Textile Association, said Vietnam accounted for a mere 3 per cent of the US's total apparel imports, and was not a threat to the US textile and garment industry.

Kiet said the average export unit price of Vietnamese-made products in 2006 was $2.96, much higher than the US's average import unit price of $1.79.

The average price of textiles from Mexico was $1.84 per sq.m; China $1.55 per sq.m; and Canada $1.02 per sq.m.

Kiet said Vietnam, which ranks 8th in textile and garments exports to the US, was subject to the programme while other larger exporters were not.

(VNA)