After joining WTO, Vietnam scraps all fashion & textile barriers. Fashion enterprise need not worry about export quota but still face great difficulties-fierce competition especially logistic.
Vietnam premier sign a decision to stop the investment for inspiration and support of fashion and textile industry. After join WTO, Vietnam will remove all fashion product barriers. However, the chairman of Vietnam Textile & Fashion Committee-Le Quoc An said that Vietnam textile product won't surge into US market after entering into WTO.
At present, little shop only account for 70%, the rest are convenient shops established by retail company. After Vietnam entering into WTO, many foreign retail groups will penetrate Vietnam market and compete with inland fashion enterprise, so Vietnam fashion product will face great pressure from price. If inland fashion enterprise can not low product cost, they will be defeated easily or shuffled over again.
During 2002-2005, Vietnam textile & fashion exported to US is decreased to 10%. Therefore, after joining WTO, Vietnam can not improve condition without good strategic measures
Vietnam can not increase the export to US speedily because it produce garment for many years. Vietnam mainly export fashion but must import 80% of fashion and textile. Especially, the gradual disappearance of tariff will influence fashion enterprise greatly. Therefore, Vietnam has to expand fabric export and can not realize localization.
It can be said that China is till the biggest competitor of US market. At present, the fashion and textile made in Vietnam can not compete with China. After China quota is scraped on the end of 2008, Vietnam is difficult to expand Vietnam export to US.
It is claimed by Le Quoc A many inland fashion and textile business in Vientam orient to high grade commodity, which is a road fit for development of textile & fashion enterprise.
