ID :
39335
Wed, 01/07/2009 - 17:12
Auther :
Shortlink :
https://oananews.org//node/39335
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Shoes lose EU tariff preferences
Hanoi (VNA) - The EU decision to remove Vietnamese footwear from the Generalised System of Preferences (GSP) as of January 1 is expected to put even greater pressure on domestic producers and exporters.
Higher import duties will be added to the anti-dumping duty of 10 percent that EU
has slapped on 33 categories of Vietnamese leather-upper shoes since 2006.
Vietnam Leather and Footwear Association (Lefaso) Vice Chairwoman Nguyen Thi Tong
said the loss of GSP status and the anti-dumping duty will compound the current
difficulties of domestic shoemakers arising from the global economic crisis and
falling demand.
As a result, Tong said, many businesses, especially small-and medium-sized
enterprises, have already cut production and laid off workers.
Under the GSP - a programme that normally helps developing countries facilitate
exports to the EU market - Vietnam shoes had qualified for lower import
tariffs. Those import duties will now increase by 3.5 - 5.5 percent on average.
Duties on leather shoes will surge to 8 percent while those on canvas footwear
will spike by 17 percent.
While the EU is the biggest importer of Vietnam footwear, accounting for
around 55 percent of the export turnover, the anti-dumping tariff has already
driven that figure down from a high of 66 percent in 2004.
The domestic footwear industry was estimated to have earned a total of 4.5 billion
USD in exports to all markets in 2008, an increase of 10 percent over 2007. Vu Van
Cuong, deputy director of the Ministry of Industry and Trade's Light Industry
Department, said shoemakers would suffer great losses due to higher tariffs in an
EU export market worth about 2 billion USD a year.
The GSP had also attracted a number of foreign investors to invest in footwear
production in Vietnam , Cuong said, adding that when the advantage disappears,
it was likely that foreign enterprises would shift production to other nations.
A delegation of the European Commission (EC) will commence its dumping
investigation this month.
The deputy director of the Ministry of Industry and Trade's Competition
Administration Department, Bui Son Dung, said this was the final review to
consider whether anti-dumping measures would be lifted, with the final decision
expected in mid-year.
To overcome the current difficulties, the department recommended shoemakers
focus on the domestic market, seek new export markets and try to cut
production costs.-Enditem
Higher import duties will be added to the anti-dumping duty of 10 percent that EU
has slapped on 33 categories of Vietnamese leather-upper shoes since 2006.
Vietnam Leather and Footwear Association (Lefaso) Vice Chairwoman Nguyen Thi Tong
said the loss of GSP status and the anti-dumping duty will compound the current
difficulties of domestic shoemakers arising from the global economic crisis and
falling demand.
As a result, Tong said, many businesses, especially small-and medium-sized
enterprises, have already cut production and laid off workers.
Under the GSP - a programme that normally helps developing countries facilitate
exports to the EU market - Vietnam shoes had qualified for lower import
tariffs. Those import duties will now increase by 3.5 - 5.5 percent on average.
Duties on leather shoes will surge to 8 percent while those on canvas footwear
will spike by 17 percent.
While the EU is the biggest importer of Vietnam footwear, accounting for
around 55 percent of the export turnover, the anti-dumping tariff has already
driven that figure down from a high of 66 percent in 2004.
The domestic footwear industry was estimated to have earned a total of 4.5 billion
USD in exports to all markets in 2008, an increase of 10 percent over 2007. Vu Van
Cuong, deputy director of the Ministry of Industry and Trade's Light Industry
Department, said shoemakers would suffer great losses due to higher tariffs in an
EU export market worth about 2 billion USD a year.
The GSP had also attracted a number of foreign investors to invest in footwear
production in Vietnam , Cuong said, adding that when the advantage disappears,
it was likely that foreign enterprises would shift production to other nations.
A delegation of the European Commission (EC) will commence its dumping
investigation this month.
The deputy director of the Ministry of Industry and Trade's Competition
Administration Department, Bui Son Dung, said this was the final review to
consider whether anti-dumping measures would be lifted, with the final decision
expected in mid-year.
To overcome the current difficulties, the department recommended shoemakers
focus on the domestic market, seek new export markets and try to cut
production costs.-Enditem
