Vietnam considers safeguard measures for apparel sector under CPTPP

The Ministry of Industry and Trade (MoIT) is drafting a circular providing guidance for the application of safeguard measures for textile and apparel products under the CPTPP.

Vietnam considers safeguard measures for apparel sector under CPTPP
Workers iron clothes at Garment 10 Corporation. The MoIT is drafting a circular on safeguard measures for textile and apparel products under CPTPP.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is the first “new-generation” free trade agreement (FTA) that Viet Nam has signed. It officially took effect on January 14 this year.

With 11 member countries and high tariff reduction commitments, the use of legal tools to protect the domestic industry is likely to occur. Therefore, the ministry said it was essential to issue guidelines for measures to safeguard against the risk of increasing imports. They include transitional and emergency action measures.

The transition period for Viet Nam’s textile and apparel products is up to five years. During this period, Viet Nam can employ transitional and emergency measures when the investigating authority concludes there is an absolute increase in imports or an increase relative to domestic production from one or more member countries as the result of tax cuts under CPTPP. The measures can also be applied if the domestic manufacturing industry suffers serious damage of threat of such damage.

Transitional measures can include the suspension of tax cuts for textile and garment products under the agreement or increasing the tax rate but not exceeding the most favoured nation (MFN) rate effective at the time of applying the measure or the MFN rate effective on the day prior to the valid agreement, whichever is lower.

Transitional measures can be applied for two years and can be extended for one more year if the investigating agency concludes it is necessary to prevent or remedy serious damage and facilitate the adjustment of the domestic manufacturing industry.

If the measures are applied for more than one year, the ministry must gradually loosen the safeguards over time.

 

For emergency measures, investigative work must finish within six months of beginning. In special cases, investigations may last up to nine months.

Emergency measures include increasing tax rates on imported apparel but not exceeding the MFN rate effective at the time of applying this measure or applying the MFN rate effective on the day prior to the valid agreement, whichever is lower. Emergency action cannot exceed two years and may be extended another two years.

The draft circular is open for public comment on the ministry’s website.

Building regulations for trade remedy measures is one of the MoIT’s key tasks for the rest of this year in order to strengthen investigative industries and protect the Vietnamese manufacturing industry as new-generation FTAs come into force and protectionism rises around the world. — VNS

VN textile & garment sector waiting for CPTPP benefits

VN textile & garment sector waiting for CPTPP benefits

The textile and garment industry has orders to export $18 billion worth of products, but the opportunities brought by CPTPP have not been that great so far.

VN textile and garment producers could face problems meeting CPTPP, EVFTA standards

VN textile and garment producers could face problems meeting CPTPP, EVFTA standards

Vietnam’s textile and garment may not be able to take full advantage of the preferential tariffs of two important FTAs, CPTPP and EVFTA, because of problems in input materials.

 
 

Other News

.
Vietnam Railways estimates a $60 million loss due to pandemic
Vietnam Railways estimates a $60 million loss due to pandemic
BUSINESSicon  30/06/2020 

Vietnam Railway Corporation (VNR) estimates a loss of nearly VND1.4 trillion (US$60 million) after tax in 2020, a massive blow to the company due to impacts of the COVID-19 pandemic.

VN records positive growth amid gloomy global forecasts
VN records positive growth amid gloomy global forecasts
BUSINESSicon  30/06/2020 

Vietnam’s gross domestic product (GDP) expanded 1.81 per cent year-on-year during the first half of this year, the lowest six-month growth pace since 2011, according to the General Statistics Office (GSO).

Patents in Vietnam increase 56 percent
Patents in Vietnam increase 56 percent
BUSINESSicon  30/06/2020 

The number of patents has increased by 56.7 per cent in the first five months of this year compared to the same period last year.

EVFTA a big opportunity for firms after COVID-19 shock: ministry
EVFTA a big opportunity for firms after COVID-19 shock: ministry
BUSINESSicon  30/06/2020 

The European Union Free Trade Agreement (EVFTA) will create significant opportunities for Vietnamese firms to recover and develop after the COVID-19 pandemic, 

Kweichow Moutai: 'Elite' alcohol brand is China's most valuable firm
Kweichow Moutai: 'Elite' alcohol brand is China's most valuable firm
BUSINESSicon  30/06/2020 

Kweichow Moutai's share price rockets thanks to its popular and sought-after baijiu drink.

Exporters advised to shift focus to ASEAN markets in face of COVID-19
Exporters advised to shift focus to ASEAN markets in face of COVID-19
BUSINESSicon  30/06/2020 

Experts have urged Vietnamese exporters to shift their attention to neighbouring ASEAN markets given that COVID-19 continues to wreak havoc on major markets such as the EU and the US, a recent conference heard.

Cambodia yet to issue documents banning import of Vietnamese fruits, vegetables: ministry
Cambodia yet to issue documents banning import of Vietnamese fruits, vegetables: ministry
BUSINESSicon  30/06/2020 

The Cambodian government and management agencies have yet to issue any official documents banning the import of Vietnamese vegetables and fruits, according to the Asia-Africa Market Department under the Ministry of Industry and Trade.

Vietnam Airlines postpones shareholders’ meeting until July 16
Vietnam Airlines postpones shareholders’ meeting until July 16
BUSINESSicon  30/06/2020 

Vietnam Airlines Group will postpone its shareholders’ meeting until July 16, according to a decision signed by Chairman of Vietnam Airlines Executive Board Pham Ngoc Minh.

Aviation sector restores nearly all domestic flights
Aviation sector restores nearly all domestic flights
BUSINESSicon  30/06/2020 

Airlines restored most of the domestic flight network after the social distancing campaign ended, and is considering resuming international flights with countries that have controlled COVID-19 well.

Cheap cars from Thailand, Indonesia expected to flow into Vietnam
Cheap cars from Thailand, Indonesia expected to flow into Vietnam
BUSINESSicon  30/06/2020 

More and more cheap cars will flood the Vietnamese market in upcoming months as automobile manufacturers in Thailand and Indonesia have urged their governments to apply measures to boost car exports.

Phu Quoc tightens land laws again
Phu Quoc tightens land laws again
BUSINESSicon  30/06/2020 

The People’s Committee of Kien Giang Province has issued a document to temporarily halt the splitting of land plots and transferal of land use purposes in the island district of Phu Quoc.

Vietnam records lowest GDP growth rate in 30 years
Vietnam records lowest GDP growth rate in 30 years
BUSINESSicon  29/06/2020 

Vietnam’s gross domestic product (GDP) increased 1.81 percent during the first six months of 2020, the lowest first-half growth pace since 2011, according to the General Statistics Office (GSO).

Petrolimex plans stock sale, divestment of State capital
Petrolimex plans stock sale, divestment of State capital
BUSINESSicon  29/06/2020 

The Vietnam National Petroleum Group (Petrolimex) plans to sell 15 million treasury stocks in transactions held between June 16 and July 15 to mobilise capital for investment in 2020, 

It's matter of time more European investments will come to Vietnam
It's matter of time more European investments will come to Vietnam
BUSINESSicon  29/06/2020 

Representatives of European organizations explained to Hanoitimes what the future holds for Vietnam–EU business cooperation on the sidelines of the “Hanoi 2020 – Investment and Development Cooperation” conference on June 27.

Vietnam GDP growth forecast in 2020 remains highest in Asia: IMF
Vietnam GDP growth forecast in 2020 remains highest in Asia: IMF
BUSINESSicon  29/06/2020 

The International Monetary Fund (IMF) maintains its forecast for Vietnam’s GDP growth at 2.7% in 2020, the highest in Asia, and the pace is expected to speed up to 7% in 2021.

Open mindset needed for prize-winning game business in Vietnam to take off
Open mindset needed for prize-winning game business in Vietnam to take off
BUSINESSicon  30/06/2020 

Strong development of the night economy, including prize-winning games businesses, could help Vietnam’s tourism compete with regional peers.

Starbucks suspends social media ads over hate speech
Starbucks suspends social media ads over hate speech
BUSINESSicon  29/06/2020 

The coffee giant said it would pause advertising on some platforms in an effort to address hate speech.

Hanoi offers good opportunities for high-tech agriculture for investors
Hanoi offers good opportunities for high-tech agriculture for investors
BUSINESSicon  29/06/2020 

A number of high-tech agricultural projects have been proposed in Hanoi, a trend encouraged by the recent Hanoi investment promotion conference.

Vietnam's seafood exporters setting up basis for EVFTA boons
Vietnam's seafood exporters setting up basis for EVFTA boons
BUSINESSicon  30/06/2020 

Vietnamese seafood producers are developing their material in a sustainable way to make use of incentives for rising exports to the EU market.

Vietnam's garment industry yet to enjoy benefits from EVFTA
Vietnam's garment industry yet to enjoy benefits from EVFTA
BUSINESSicon  30/06/2020 

It is anticipated that local textile and apparel firms will not be able to enjoy any immediate benefits from the European Union -Vietnam Free Trade Agreement (EVFTA) once it enters into force due to rules of origin, according to insiders.

 
 
 
Leave your comment on an article

OR QUICK LOGIN