Garment and textile exports to EU plunge
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The volume of Vietnam’s garment and textile exports to the European Union (EU) market saw a year-on-year reduction of 30 percent during the January to mid-March period, said the Vietnam Textile and Garment Association (Vitas).
Public debt crises and EU consumers reducing their spending were reasons for the decreased export level, said Vitas.
EU importers are shifting their contracts from Vietnam to Cambodia, Laos and Bangladesh to avoid the import tax of 10 percent, as middle-income Vietnam no longer enjoys most favoured nation (MFN) status, the association said.
To boost garment and textiles exports, the Ministry of Industry and Trade suggested businesses focus on the number of free-on-board (FOB) and Original Design Manufacturing (ODM) contracts and using more local materials for production.