Vietnam Textile and Apparel Association (VITAS) has urged the Government not to introduce any tariff on importing polyester fibre.
The Government is reportedly mulling to charge 2 per cent tax on fibre import. Currently, there is no tax on imports.
The Vietnamese trade association states that increase in tariff will only add to the woes of the textile companies in the country. The firms already have to import raw materials to manufacture products locally.
The Dinh Vu Polyester Fibre Plant that is situated in the Hai Phong province of northern Vietnam is one among the several factories that had to terminate its operations following the inability to bear the escalating costs. The country cannot afford the closure of such plants.
The association has also sent a proposal to the Government to stop increasing wages from next year onwards. Additionally, it has requested the Government to consider revising the insurance premium rates that textile firms have to pay.
The proposal, if accepted, will help the textile companies to enhance their competitiveness, expand their base and also create employment opportunities in rural areas.
