Vietnam has achieve significant export success in its fabric and clothing industry in the last decade. Yet , it continue to received a large number of subsidies in the government, especially export financial assistance which is prohibited in the worldwide trade once Vietnam continues to be an official part of WTO. It really is textile and garment market that is one of the most difficult problem in negotiation procedure for bilateral contract with US. So for such a dependent-on-government industry like textile and garment market, what happens after taking away all tastes? Whether they could survive? What should they perform to gain rewards in such a fierce competition after WTO accession? That is the purpose of our daily news. We hope that paper que tiene give you a summary about the situation of textile and garment sector, as well as the point of view about troubles increasing in this industry.
I. The situation of fabric industry in Vietnam just before WTO's accession2 1 . one particular SWOT evaluation of fabric industry2
1 ) 1 . one particular Strength2
1 ) 1 . 2 . Weakness3
1 . 1 . a few Opportunities4
1 ) 1 . 5. Threats5
1 . 2 Foreign trade subsidies with the government pertaining to textile industry6 II. The effect of WTO's accession on export subsidies7
2 . one particular Rules in the agreement and Vietnam's issues: 7
2 . 1 . you Rules of WTO and effects to Vietnam: six
2 . 1 ) 2 The down sides of makers: 9
installment payments on your 2 Modification of the authorities and materials producers: eleven 2 . installment payments on your 1 Realignment of the authorities: 12
installment payments on your 2 . a couple of Adjustment of producers13
III. Recommendation for development trend of linen industry14 a few. 1 Change in the product14
3. 1 . 1 Embrace value-added14
3. 1 . 2 Build the manufacturer name16
3. 2 Foreign market16
3. 2 . 1 Reduce the likelihood of antidumping16
several. 2 . a couple of Market research17
3. several Other Federal government Policy20
3. 3. you Reform administrative procedures20
a few. 3. two Financial measures20
3. three or more. 3 Support export20
3. 3. 5 Support investment21
3. 3. 5 Encourage healthy competition21
I. The case of textile industry in Vietnam before WTO's jump 1 . you SWOT examination of linen industry
In each part, we would try to go into details about some primary characteristics and also mention another less essential ones.
1 . 1 . 1 Power
There are a lot to say about strengths of our textile market. They can be divided into three categories: employment (industry generates employment), wages (low labor costs for employees as well as employers), and pricing (competitive pricing of exports). Textile and dress industry is usually labor-intensive. It needs a huge number of labor pushes to generate business. Therefore , for a long time, the market has created a considerable amount of jobs to get young people. Joblessness decreases and living normal of particular working classes is improved. Most employees working in the linen and garment industry have low education and low skills. They will graduate or maybe haven't managed to graduate from large schools and apply for careers not requiring much past education. Because of this, they possibly receive low wages or perhaps nothing. With regards to employers, their very own salaries can be much higher contrasting with other staff but they just constitute an extremely small portion of the firm as a whole. Mindful of these, a lot of international investors have decided to establish all their business of textile and garment in Vietnam. As economic change got underway, textile and garment have become the second most significant export category after petroleum. The official VND/USD exchange price is often somewhat high, which in turn brings Vietnam the competitive pricing of export. Many in overseas markets happen to be relatively more affordable than other ones, which attracts consumers more and more.
1 . 1 . 2 . Some weakness
Like Strength, our country's weaknesses in textile and garment market can be put into 4 details. The first one to note is that our companies in the industry are too dependent on foreign brokers and have little contact with last customers. From this form, the buyers (EU market, Japan, North America) do not...