The Loss Of Preferential Treatment In Vietnam Footwear

.tags As the EU considers that the Vietnamese footwear industry has always been very competitive in the European market, it will be canceled before the end of this year the preferential tax treatment of universal footwear. This is something we should pay attention to footwear manufacturers, as many Hong Kong businessmen are considering production base next year, increasing operating costs from the Pearl River Delta moved to Vietnam, the high production exports to the EU.

According to GSP, the EU would provide unilateral tariff preferences to developing countries. Office in Vietnam on behalf of the European Union to explain, if a beneficiary (such as Vietnam) on the value of EU exports, accounting for all beneficiary countries export similar products to the EU accounts for 15%, that means the industry of the country has enough competitive without preferential treatment.

As of 2006, two years, Vietnam’s footwear exports covered by GSP average value, accounting for the same tax regime, the EU 19.9% of all footwear imports. In addition, the Vietnamese exports to the EU benefit from the product value, the footwear average of 49.1%, the proportion of a country in line with the EU to lift the minimum requirements for GSP treatment.

However, many people worried about Vietnam in the current economic slowdown, and with the local footwear industry in recent years, doubling the number of workers, the EU GSP will affect the number of cancellation of the Vietnamese workers.

Vietnam, one industry sources, the EU may continue to impose anti-dumping duty Vietnamese leather shoes to make the situation even worse.

According to the Vietnam Leather and Footwear Association, said the Italian footwear manufacturer Union will appeal to extend the implementation of EU anti-dumping duties on Vietnamese leather shoes, period. EU in 2006 on the introduction of Vietnamese leather shoes anti-dumping duties, unless the EU industry this year, on or before July 7 to appeal, or anti-dumping duties will be automatically removed on October 7.

Italian footwear manufacturer Union, once a complaint, the European Commission will re-investigation of Vietnamese leather shoes, a period of 15 months, during the Vietnamese leather shoes will be required to pay anti-dumping duties.

Vietnam’s trade organization has members repeatedly assured them that they are trying to promote the EU anti-dumping tax repeal, the Vietnamese producers are also urging the Government to abolish the shoe materials and accessories import tariffs in order to enhance industry competitiveness.

Currently, about two percent of the Vietnamese footwear exports to the EU GSP preferential treatment do not apply. This means that more and more Vietnamese footwear exporters can with quality and brand advantages, without any concessions, the competitive prices in the EU market products.

Furthermore, the EU pointed out that the number of Vietnamese footwear workers doubled in the past three years, reflecting the local footwear exports have a scale without the need to provide support for the GSP. On the other hand, the Vietnamese footwear industry is still very dependent on imported materials, accounting for about 75% of the amount of its materials.

Vietnamese footwear exports last year worth about 3.9 billion U.S. dollars, is expected this year rose 17%, reaching 4.5 billion U.S. dollars, of which the EU market accounted for about 54% of the total export value in 2010 will increase to about 62 million.

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