Socialist Republic of Vietnam

Ha Noi, Nov. 21 (VNA) -- Viet Nam's textile and garment enterprises are gearing up for exports to the U.S. market immediately after approval of the Viet Nam-U.S. trade agreement. Viet Nam's National Assembly and State President Tran Duc Luong are expected to give their approval this December.

Assuming that approval granted on schedule, the industry is preparing in anticipation of their products entering the American market next spring and summer.

An industry dealer noted that Viet Nam's textile and garment industry is facing two big opportunities. First, when the trade pact takes effect, Viet Nam will be able to export its textile and garment products to the U.S. market without quota limitations in the initial period.

Second, Viet Nam is considered to be a safe country for business operation and investment. Therefore, it is well placed to take trade orders which have shifted from countries regarded as politically unstable such as Pakistan, Turkey, Indonesia and the Philippines, added the dealer.

Viet Nam has already charted a long-term course for developing its textile and garment industry during this decade. Accordingly, the Government has given financial support to the industry, including policies providing soft bank loans with an annual interest rate of 3.5 percent for 3 to 5 years as well as giving awards to the best exporters.

However, economists warn that Vietnamese textile and garment exporters face big challenges in the U.S. market. Many are not fully aware of proceduces governing clients and customers, import-export tariffs on export items, and customs procedures.

In fact, most Vietnamese products currently found in the U.S. market are made under sub-contracts between foreign companies and their Vietnamese partners. These products are sent to the U.S via the European Union, Japan and Taiwan.

In response to the situation, many Vietnamese enterprises and companies have spared no effort in seeking ways into the U.S. market. The Viet Nam Textile and Garment Corporation (Vinatex) said it has been preparing for two years now. Vinatex has already opened an office in Hong Kong and has also established an office in New York.

Since early this year, Vinatex has 42 projects licensed with combined investment of VND 968 billion, including 26 textile projects worth VND 686 billion. Other major projects include new production line installations at the Vinh Phu textile factory, the Ha Noi textile and garment company, the Phong Phu textile plant, as well as other textile and garment companies in Hue, Ha Noi and Nam Dinh province.

In addition, three of the six enterprises of the Duc Giang garment corporation are preparing to export 400,000 products to the U.S. market in the spring of next year, including 170,000 jackets.

The Duc Giang Corp. is one of the few businesses in Viet Nam which have already made full preparations for their entry into the American market. Since 1999, it has invested VND 40 billion in the import of modern equipment to produce high-quality products which meet all the requirements from the U.S. market.--VNA