MINISTRY OF EDUCATION
AND TRAINING
MINISTRY OF INDUSTRY
AND TRADE
VIETNAM INSTITUTE FOR TRADE
PHAM THI LUA
TECHNICAL BARRIERS TO EXPORTING GARMENT AND
TEXTILE AND SOLUTIONS OF VIETNAM
Major: Trade
Code: 62.34.10.01
SUMMARY OF DOCTORAL DISSERTATION IN ECONOMICS
Hanoi - 2014
THE DISSERTATION IS COMPLETED AT THE
VIETNAM INSTITUTE FOR TRADE - MINISTRY OF INDUSTRY
AND TRADE
Research supervisor:
1. Dr. Nguyen Thi Nhieu
Vietnam Institute for Trade
2. Dr. Pham Thu Giang
Ministry of Industry and Trade
This Dissertation will be presented to the Board of Examiners
at Insititute level
At the Vietnam Institute for Trade - Ministry of Industry and Trade
Address: 46 Ngo Quyen, Hanoi
At , , 2014
The dissertation can be found at:
1. National Library of Vietnam
2. Library of the Vietnam Institute for Trade
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INTRODUCTION
1. Reason to choose the topic:
During the national innovation, along with other economic sectors,
the garment and textile industry has made significant contribution to the
economic growth, creating jobs, increasing incomes for a large proportion
of workers. In the context of the current deep globalization, trade
liberalization trend has increasingly developed and as an objective result,
the trade protectionism has also increasing developed. The system of
technical barriers is considered the best and popular measure to prevent
imports, protect domestic production, the consumers as well as the national
interests. Types of technical barriers to trade in general and to the garment
and textile in particular applied by countries have continually increased at a
more sophisticated basis. The diversity and complexity of such technical
barriers and their increasing use in big garment and textile importing
markets have posed great challenges for the garment and textile exporting
countries in general and for Vietnam in particular.
With the increase in use of technical barriers by importing markets
and limited capacity to overcome the technical barriers of Vietnam at a
macro-level and at enterprise level, which may have great impact on
implementation of garment and textile development in the future, it is
required to carry out a deep study on the technical barrier system of the
importing markets of Vietnam’s garment and textile. This is the reason why
I decided to do my doctoral dissertation on “Technical barriers to exporting
garment and textile and solutions of Vietnam”. This study will focus on
technical barriers of importing countries and capacity to overcome such
technical barriers of the Vietnam’s garment and textile in order to provide a
scientific foundation for negotiating, expanding the market access of the
garment and textile products and recommend appropriate measures to
overcome such technical barriers in order to promote the export of garment
and textile, contributing to fulfilling the import and export strategic
objective and development strategy until 2020.
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2. Study objectives and tasks
Study objectives: To clarity the scientific basis (both theoretical
and practical) to recommend measures to overcome the technical barriers of
importing countries, promote the export of garment and textile in Vietnam.
Study tasks:
In order to fulfill the study objectives, my dissertation will mainly
focus on the following tasks:
Firstly, clarify theoretical issues concerning technical barriers and
overcoming technical barriers to export of garment and textile.
Secondly, study experience of some countries in the world in
overcoming technical barriers to the garment and textile and draw lessons
for Vietnam.
Thirdly, analyze and assess the export status of Vietnam’s garment
and textile in recent years.
Fourthly, analyze the system of technical barriers of some major
markets of the exporting garment and textile and impact of the technical
barriers on the Vietnam’s garment and textile; analyze the status of
overcoming technical barriers of Vietnam during past time; assess its
achievements as well as shortcomings and their causes.
Fifthly, study and analyze the context as well as prospect of export
of garment and textile in Vietnam until 2020, accordingly propose
orientation and measures at both macro and micro levels to enhance the
capacity to overcome the technical barriers and promote the export of
garment and textile in Vietnam.
3. Study subjects and scope
Study subject: My dissertation will focus on studying the technical
barriers to the exporting garment and textile.
Study scope: My dissertation will focus on studying the technical
barriers to the garment and textile imposed by importing countries, as well
as policies and measures applied by Vietnam to overcome such technical
barriers, accordingly recommend measures to enhance the capacity to
overcome such technical barriers, promote the export of garment and textile
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in Vietnam. Regarding space: my dissertation will focus on 3 major
importing markets of Vietnam which are United States of America, EU and
Japan; studying the capacity to overcome the technical barriers of
Vietnam’s garment and textile at national level on both macro and micro
basis (State and Enterprise). Duration: study the technical barrier
overcoming during 2007-2013 and recommend measures until 2020.
4. Study method
General methodology: My dissertation is made based on
methodology of the Marxism-Leninism in combination with viewpoints,
guidelines and policies on socio-economic development of the Communist
Party and the Government as well.
Specialized methods: study secondary documents; make statistics
and comparison; ask for ideas of experts as well as enterprises; carry out
sociological surveys, gather, analyze and evaluate the findings.
5. New contributions of the Dissertation:
Firstly, the dissertation has a new approach, studies the technical
barriers in an active manner; considers the technical barriers as appropriate and
scientific regulations and standards, binding countries, importers and exporters
to comply on both macro and micro basis (the State and Enterprise).
Secondly, the dissertation has systemized and clarified some
theoretical issues relating to the technical barriers to exporting garment and
textile, explained the definition of technical barrier and presented its author’s
viewpoint about classification of major technical barriers to the exporting
garment and textile; recommend measures to overcome the technical barriers
in a positive manner; analyze factors impacting the capacity to overcome the
technical barriers of garment and textile exporting countries.
Thirdly, my dissertation has studied the experience in overcoming
technical barriers to the exporting garment and textile of some countries
including China, India and Thailand on both State and enterprise levels in
order to draw lessons for Vietnamese Government as well as garment and
textile enterprises.
Fourthly, my dissertation has evaluated the real use of technical
barriers of the major importing countries and their impacts on export of
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garment and textile of Vietnam. The dissertation has also analyzed and
evaluated the capacity to satisfy as well as measures to overcome the
technical barriers to the exporting garment and textile of the Vietnamese
government as well as enterprises.
Fifthly, the dissertation has recommended 4 viewpoints;
orientations to overcome the technical barriers which should be applied by
the Government as well as the enterprises. The dissertation has also
recommended general methods to overcome the technical barriers to the
exporting garment and textile of Vietnam until 2020.
6. Dissertation structure
In addition to the Introduction, Study Overview, Conclusion,
References and Appendix, my dissertation is divided into 3 chapters as
following:
Chapter 1. Theoretical basis of technical barriers and overcoming
technical barriers to export of garment and textile.
Chapter 2. Status of technical barriers to the exporting garment and
textile of Vietnam and measures to overcome such barriers.
Chapter 3. Viewpoints, orientations and measures to overcome the
technical barriers to promote export of garment and textile until 2020.
STUDY OVERVIEW
In the current context of deep globalization of the international
economy and increasingly developed science and technology, the technical
barriers in general and technical barriers to trade in particular have
increasingly diversified. The technical barrier to trade is one of the big
issues of the current international trade. It has been put in many studies at
both national and international levels. The World Trade Organization
(WTO) has an Agreement on Technical Barriers to Trade - TBT,
Agreement on sanitary and phytosanitary measures - SPS in order to
prevent countries from taking advantage of SPS technical standards and
regulations for trade protection, preventing free trade; bilateral Free Trade
Agreements (FTAs) and Regional Trade Agreement (RTAs) contain
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regulations on TBT and SPS, etc. in order to facilitate the trade. All
members of WTO and FTAs as well as RTAs have their TBT and SPS
offices to monitor, supervise and coordinate the TBT and SPS
implementation, etc. By now, there have been many national and
international studies on technical barriers to trade.
However, as far as I know, until now, there has no study providing
a systematic and full research on the technical barriers and measures to
overcome such technical barriers to the garment and textile of Vietnam.
The previous studies mainly focus on studying the technical barriers to
exports of Vietnam in general or non-tariff barriers to a certain commodity
without a deep analysis of technical barriers to one certain industry. The
measures recommended by such studies are mainly for orientation which
can be used for all commodities. Some studies have studied the technical
barriers but the information provided by such studies is not sufficient and
comprehensive, and especially such studies do not reflect and update the
latest developments of the technical barriers - a field with regular
appearance of new issues.
STUDY CONTENT AND FINDINGS
CHAPTER 1
THEORETICAL BASIS ON TECHNICAL BARRIERS AND
OVERCOMING TECHNICAL BARRIERS TO EXPORT OF
GARMENT AND TEXTILE
1.1. DEFINITION, CLASSIFICATION AND IMPACT OF
TECHNICAL BARRIERS ON INTERNATIONAL TRADE.
1.1.1. Definition of technical barriers
Although there are many definitions of technical barriers, in my
opinion, technical barriers can be defined as following: Technical barriers
to international trade are technical rules, standards and measures used by
the importing country to prevent goods and services of foreign countries
from meeting the requirements to enter the markets of importing country.
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1.1.2. Classification of technical barriers
Currently there are many ways to classify the technical barriers to
trade. However, to fulfill the study objectives, establish the scientific
foundation for recommending macro and micro measures to overcome the
technical barriers to the exporting garment and textile of Vietnam, I will
combines the classifications of both the Ministry of Industry and Trade and
the enterprises with a highlight on regulations on origin of the using
countries as a new technical barrier. Accordingly, the technical barriers to
international trade can be classified into 6 categories, including:
Regulations and standards on product quality; Regulations and standards on
safety of consumers; Regulations and standards on environment;
Regulations and standards on social responsibility; Regulations and
standards on product labeling; Regulations on on product origin.
This classification will be used throughout my study.
1.1.3. Impact of technical barriers on international trade
Due to their diversity and flexibility, the technical barriers have a
great impact scope. Most trade activities in the world have to face technical
barriers. The reality shows that the technical barriers have impact on both
importing countries and exporting countries on both positive and negative
manners, on both importers and exporters.
1.2. TECHNICAL BARIERS TO THE EXPORTING GARMENT
AND TEXTILE
1.2.1. Definition of technical barriers to the exporting garment and textile
1.2.1.1. Definition
Technical barriers to the exporting garment and textile are technical
rules, standards and measures used by the importing country to prevent
garment and textile of exporting countries from meeting the requirements to
enter the markets of the importing country.
1.2.1.2. Types of technical barriers to the garment and textile
For exporting garment and textile, the technical barriers are also
classified as technical barriers to exports in general in 1.1.2. They are: (i)
regulations, standards and measures on: product quality, human safety and
health, environment; social responsibility; garment and textile labeling; garment
and textile origin. This classification has been used throughout my study.
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1.2.2. Overcoming technical barriers to the exporting garment and
textile
1.2.2.1. Definition
Overcoming the technical barriers to exporting garment and textile
is the implementation of strategies, measures to prevent, and event
eliminate trade preventers caused by the technical barriers, bringing the
garment and textile from the exporting countries to be used in the
importing countries. Or in other words, overcoming the technical barriers to
exporting garment and textile is the capacity and ability of the exporting
countries (including garment and textile enterprises and exporting garment
and textile) to meet and comply with the technical regulations and
standards imposed by the importing countries on their importing garment
and textile.
1.2.2.2. Measures to overcome the technical barriers to exporting
garment and textile
In this dissertation, I have approached the measures to overcome
the technical barriers to exporting garment and textile in a positive and
active manner, respecting interests of partners and complying with
international commitments to protect their own interests.
Overcoming the technical barriers to exporting garment and textile
required an effort of the whole society which includes not only the
enterprises, but also the Government and domestic and international civil
social organizations. In which, main responsibility and cooperation of
relevant parties to overcome the technical barriers can be carried in the
following methods: Enterprise is the direct subject to overcome the
technical barriers, meeting the technical requirements of the importing
markets. The Government create favorable environment, instruct and
support the enterprises to overcome the technical barriers. Association is
bridge connecting the Government and enterprises so that they can work
together to overcome the technical barriers to the exporting garment and
textile. Cooperation between the Government and the enterprise community
is form an integral part to overcome the technical barriers imposed by the
importing markets. In addition, it is required to make use of international
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cooperation and support to overcome the technical barriers imposed by the
importing countries.
1.2.3. Factor impacting the capacity to overcome the technical
barriers to exporting garment and textile of one country
Overcoming the technical barriers to exporting garment and textile
of one country depends on several factors which can be classified into two
main groups: domestic and international factors. The international factors
include: globalization and international economic integration; development
of science and technology in the world; globalization and coordination of
trans-government and global policies for a sustainable development. The
domestic factors are: the national development and IT level; management
capacity of the Government; capacity of the enterprises; cooperation among
the Government - Enterpriese - Association, international connection and
cooperation.
1.3. EXPERIENCE OF SOME COUNTRIES ON OVERCOMING
THE TECHNICAL BARRIERS TO EXPORTING GARMENT
AND TEXTILE AND LESSONS FOR VIETNAM.
1.3.1. Experience of some countries in the world
1.3.1.1. Experience of China
- Measures to overcome the technical barriers approved by the
Chinese Government are: enhance exchanges and negotiations among
countries to reduce the technical barriers; establish the information
collection and processing mechanism in the quickest way; enhance the
macro regulations, standardize and develop the industry in a healthy
manner; promote the international standards; propose many technical
regulations and standards matching the international market; establish a
special organization and carry out a serious research on TBT agreements;
enhance training of human force.
- Measures to overcome the technical barriers of the garment and
textile enterprises in China include: improve quality and structure of
products for exporting; build trademarks of China; training technical human
force; comply with laws, reliable business regulations and management
methods.
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1.3.1.2. Experience of India
- For the Government: support exporting enterprises in shipment
inspection and have a favorable mechanism for certificate granting; apply
measures imposed by other countries on India such as sue on dumping of
other products.
- For garment and textile enterprises in India: select a generation
of new managers in garment and textile industry; approach and work with
enterprises in relevant countries to reduce cost and technical barriers to
garment and textile exported to big markets.
1.3.1.3. Experience of Thailand
- For the Government, Thailand’s Government has requested its
exporters to have their own certificate ensuring the national standards in
order to improve the competitiveness of the exports; established a
procedure to settle all TBT-related issues; applied measures imposed by
other countries on Thailand such as sue for dumping of other products.
- For garment and textile enterprises in Thailand: focus on
investing in advanced technologies and equipment to carry out on-spot
quality inspection, well meeting the technical standards of their partners.
1.3.2. Lessons for Vietnam
1.3.2.1. Applicable successful lesson
China, India and Thailand are countries which share many
similarities with Vietnam and they have enjoyed a high turnover from
export of garment and textile to the international market. The study of
experience of such countries on overcoming the technical barriers to
exporting garment and textile has drawn some useful lessons as following:
- For State management organizations: enhance the propagation
and dissemination of laws, especially policies and regulations of the
importing country; collect and process information about markets and trade
policies of countries importing the garment and textile; innovate the state
management, improve the State capacity on negotiation and settlement of
trade disputes, Promote the scientific and technical progress, strengthen
scientific and technical system, provide scientific and technical assistance;
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establish quality inspection centers for export products, request exports to
have certificate ensuring the national standards.
- For garment and textile enterprises in Vietnam: be active and willing
in implementing measures to respond to the technical barriers of exporting
countries: carry out their production in combination with environmental
protection, improve their social responsibility; invest in or cooperate with
foreign enterprises in trade associations which see the participation of major
importing countries in order to reduce the cost as well as technical barriers
upon exporting of the garment and textile to big markets;.
1.3.2.2. Lessons which should not be applied
Besides the applicable successful lessons, the above experience
study also draws some lessons which should not be applied to avoid any
unexpected risks and loss. They are, firstly, Vietnam should not retaliate
upon importing countries. Secondly, Vietnam should not apply too fast
development policy to exporters garment and textile.
CHAPTER 2
STATUS OF TECHNICAL BARRIERS TO THE EXORTING
GARMENT AND TEXTILE OF VIETNAM AND MEASURES TO
OVERCOME SUCH TECHNICAL BARRIERS
2. 1. OVERVIEW ON CURRENT EXPORT OF GARMENT AND
TEXTILE IN VIETNAM.
2.1.1. Status of export of garment and textile in Vietnam
For export structure: the Vietnam’s garment and textile are mainly
exported under form of outsourcing for foreign countries and their materials
are mainly imported from other countries. In 2013, turnover from export of
garment and textile accounts for over 96% of the total export turnover, in
which turnover from export of outsourced products accounts for 75.3%, and
turnover from export of finished products accounts for 21.2%.
For export turnover: during 2011 – 2012, garment and textile is the
industry gaining high export turnover, only following oil and gas industry.
Export of garment and textile has been continually expanded and it has
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become the industry of the highest export growth rate but its growth is
mainly on quantity. On average, the turnover from export of garment and
textile increases about 20% during this period.
For export markets: The Vietnam’s garment and textile have been
exported to 54 markets in the world and Vietnam is currently ranked on the
top 5 exporters in the world, the second biggest exporter to US, the third
biggest exporter to Japan and the ninth biggest exporter to EU.
2.1.2. General assessment of status of Vietnam’s export of garment
and textile during past time.
In recent years, the Vietnam’s garment and textile industry has
experienced many difficulties, but it still overcomes and strives to gain
major achievements. In addition to creating jobs for a great number of
social workers, the garment and textile industry has also made a great
contribution to development of the national economy. Export turnover
garment and textile constantly increased over the years, become a garment
and textile put in two main export commodity groups with the largest
turnover of the Vietnam years, the foreign currency earner for soil water-
resistant l c. calves n addition to these successes, there are still many
difficulties and problems in exporting textiles. In addition to such
achievements, there have been many difficulties and shortcomings in the
garment and textile industry.
2.2. TECHNICAL BARRIERS OF MAJOR IMPORTING
MARKETS AND THEIR IMPACTS ON VIETNAM’S
GARMENT AND TEXTILE.
2.2.1 Technical barriers imposed by major importing markets on
Vietnam’s garment and textile
In this dissertation, I have studied the technical barriers imposed by
three major markets to which the Vietnam’s garment and textile are
exported, which are United States, EU and Japan. These markets shares the
same categories of technical barriers to garment and textile as stated in
1.2.1.2. Based on the international regulations, especially regulations of
WTO on the garment and textile, each country may add its own regulations
which can be stricter than WTO’s regulations.
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2.2.2. Assessment of impacts of the technical barriers imposed by
major importing markets on the Vietnam’s garment and textile.
The technical bariers imposed by the importing markets have a
great impact on the Vietnam’s garment and textile in both positive and
negative manner.
- Positive impacts: the technical barriers have promoted the in-
depth investment, improved the quality and competative capacity of the
Vietnam’s garment and textile, protected the Vietnam’s environment;
contributed to better protecting the labor force; prevented the trade fraud in
export; promotedchanges in managers’ viewpoints; improved the capacity
on discussion, negotiation and settlement of international disputes.
- Negative impacts: The technical barriers are no longer a risk, they
have had significant negative impacts on the Vietnam’s garment and textile,
including: increasing costs (both production cost and export cost), decrease
the competitive capacity of the Vietnam’s garment and textile, losing the
international market share. They have impacts on a large scale, not only the
garment and textile industry, but also industries of printing and dyeing,
chemicals, fiber and raw materials, reducing the income of such industries;
leading to a yaw of trading of garment and textile in Vietnam; indirectly
causing difficulties for the labor force in Vietnam; restructuring the
garment and textile supply chain under the impact of the technical barriers
from the major importing markets.
2.3. STATUS OF OVERCOMING THE TECHNICAL BARRIERS TO
VIETNAM’S GARMENT AND TEXTILE DURING PAST TIME
2.3.1. Application of measures to overcome the technical barriers to
Vietnam’s exporting garment and textile.
2.3.1.1. Measures to overcome the technical barriers applied by
Vietnam’s garment and textile enterprises
Firstly, in order to satisfy the technical barriers imposed by
importing countries, the Vietnam’s garment and textile enterprises have
actively approached requirements of the importing countries, established
management system to ensure compliance to product quality, safety,
environment, social liability and product labeling.
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Secondly, many big garment and textile enterprises have their
interest closely associated with importing countries in order to reduce the
impacts of technical barriers imposed by the importing countries. The
Vietnam’s enterprises have worked with enterprises in United States, EU
and Japan in production and distribution of garment and textile, which have
helped Vietnam’s enterprises to avoid some barriers.
2.3.1.2. Government’s measures and policies to support enterprises to
overcome the technical barriers to garment and textile
The enterprises play the main role in implementing measures to
overcome the technical barriers; however the assistance as well as
favorable conditions provided by the Government also plays an important
role. In recent years, together with the efforts of the garment and textile
enterprises, the Government has: provided the enterprises with information
about the exporting markets; promoted negotiation, signing and joining
bilateral, regional and multi-lateral trade agreements; provided supporting
forces; completed the legal system and state management apparatus on
technical standards and regulations and procedure to assess the compliance
to commitments in TBT agreements of WTO and other international
commitments; participated in settlement of trade disputes, eliminated the
technical barriers imposed by some countries on advantaged garment and
textile of Vietnam.
2.3.2. Evaluation of measures to overcome technical barriers to
Vietnam’s exporters garment and textile during past time.
2.3.2.1 Achievements:
The figures on turnover from Vietnam’s export of garment and
textile to other markers have shown a continuous effort of the enterprises in
satisfying the technical barriers.
- Awareness of Vietnam’s enterprises of the technical barriers have
been clearly improved: many enterprises after a long participation in export
of garment and textile said that they have get used to satisfying the
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regulations of the exporting markets and also paid attention to meet the
customers’ demands.
- The capacity to satisfy the technical barriers of Vietnam’s
garment and textile enterprises has become much better. Since joining
WTO, the Vietnam’s enterprises have had more favorable conditions and
got used to strict regulations of the difficult markets, had more experience
in response to the technical barriers in order to promote the export of
garment and textile to big importing markets such as US, EU and Japan and
better access to other markets such as South Korea and Canada.
The study and surveys for ideas of the garment and textile
enterprises have shown that the Ministries, agencies and organizations have
provided a great support to the garment and textile enterprises to overcome
the technical barriers. The Vietnam’s garment and textile exporters have
highly appreciated the role of garment and textile management agencies,
the Ministry of Industry and Trade, the Ministry of Science and
Technology which have closely monitored, supervised, provided
information about regulations of importing countries, urged the enterprises
to strictly comply with such regulations.
2.3.2.2 Shortcomings
In addition to achievements gained by the Vietnam’s Government
and garment and textile enterprises as stated above, there have been many
shortcomings as following:
- For garment and textile enterprises:
Firstly, despite significant improvement in awareness of the
garment and textile enterprises, there have still been many shortcomings.
The survey findings have shown that in addition to enterprises which are
aware of the importance of studying regulations of the importing markets,
many enterprises, especially small-scale ones have not paid much attention
to this issue. This may result in a big disadvantage for enterprises which
want to expand their market or share risks in export.
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Secondly, capacity to satisfy the technical barriers imposed by the
importing countries of Vietnam’s garment and textile enterprises is limited.
The current requirements of the importing countries have become
increasingly stricter, but the enterprises have a limited capacity, and as a
result, they have been facing difficulties in many aspects.
- For State management agencies, their measures to facilitate and
support the garment and textile enterprises to overcome the technical
barriers contain many shortcomings as following:
Firstly, non-compliance with the international standards and
regulations of the importing countries. Since many national standards do
not match the international standards, the enterprises have to apply many
standards at the same time: international standards, national standards and
standards of importing countries. This is a big preventer for enterprises.
Secondly, weak propagation and dissemination of provisions of
TBT agreements and regulations applied by the importing countries.
Thirdly, many shortcomings in cooperation among State
management agencies from Central to local level.
2.3.2.3. Causes.
Firstly, such shortcomings are caused by the Government and State
management agencies, due to: insufficient, in-consistent system of legal
documents and by laws with a low enforcement; weak economic
development, outdated science and technologies, lack of standard
laboratories; limited policies and forces of the State in supporting he
overcoming of the technical barriers to the garment and textile; weak
capacity of the Government in negotiating and settling disputes relating to
the technical barriers to garment and textile; no methodical and scientific
master strategy to improve the competitive capacity of the exporting
garment and textile in Vietnam.
Secondly, the shortcomings are caused by the Garment and textile
Association: the Vietnam Garment and Textile Association has not fulfilled
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its role in response to the technical barriers to trade imposed by foreign
countries. The Association is still weak in organization, financial potential
and specialized capacity and its connection is still loose. Working as a
representative for interests of the enterprises and being responsible for
supporting the enterprises to deal with the technical barriers of foreign
countries, but in reality, the Vietnam garment and textile association has
not fulfilled its tasks yet.
Thirdly, the shortcomings are also caused by the garment and
textile enterprises in Vietnam: Many enterprises have no access to
regulations and standards of the importing countries. Measures to deal with
the technical barriers applied by the enterprises in Vietnam are mainly to
respond rather than to prevent; the internal capacity of the enterprises is
limited; connection among Vietnam’s garment and textile enterprises to
overcome the technical barriers is weak; many enterprises have no long-
term business strategy and plan.
CHAPTER 3
VIEWPOINTS, ORIENTATIONS AND MEASURES TO OVERCOME
THE TECHNICAL BARRIERS TO PROMOTE EXPORT OF
GARMENT AND TEXTILE IN VIETNAM UNTIL 2020
3.1. DEVELOPMENT TREND OF THE TECHNICAL BARRIERS
AND ABILITY TO APPLY THE TECHNICAL BARRIERS OF
THE MAJOR IMPORTING MARKETS TO THE VIETNAM’S
EXPORTING GARMENT AND TEXTILE ULTIL 2020
3.1.1. Development trend of the technical barriers in the world
Firstly, the technical barriers in the world will be quickly
developed in quantity and increasingly diversified in the coming time.
Secondly, the technical barriers will be stricter and more
complicated.
Thirdly, the technical barriers will be expanded from a certain
product to the whole production process.
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3.1.2. Trend to apply the technical barriers of the major importing
markets of the Vietnam’s garment and textile
The researches and consultation with experts about the technical
barriers have clearly shown a trend to apply technical barriers of the
importing countries to the Vietnam’s exporting garment and textile as
following: regulations on quality standards will be gradually transformed
into mandatory standards; regulations on consumption safety will become
stricter and be integrated into many other barriers; regulations on
environmental protection, standards on labor force and social responsibility
will draw more and more attention and become mandatory standards;
regulations on product labeling will become more and more complicated;
regulations on product origin will become more and more complicated and
become new barriers.
3.2. VIEWPOINTS AND ORIENTATIONS TO OVERCOME
THE TECHNICAL BARRIERS TO THE VIETNAM’S
EXPORTING GARMENT AND TEXTILE ULTIL 2020
3.2.1. Prospects for export of garment and textile in Vietnam until 2020
The Vietnam’s garment and textile development strategy until
2015, with a vision to 2020 requires big adjustments to match the real
situation and new trends. The Ministry of Industry and Trade has
approved the garment and textile development plan until 2020, with a
vision to 2030, and is implementing the exporting and importing strategy
for the period of 2011-2020, with orientation to 2030, accordingly, it is
expected to have export turnover of the garment industry reached US $36-
38 billion in 2020, and reached UD $64-67 billion in 2030, corresponding
to a localization rate of 65 and 70%.
3.2.2. Viewpoints to overcome the technical barriers to the Vietnam’s
exporting garment and textile
Firstly, overcoming the technical barriers to the garment and textile
is to fulfill the strategic objectives of the garment and textile until 2015,
with a vision to 2020 and the garment and textile development plan until
2020, with a vision to 2030.
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Secondly, overcoming the technical barriers to the garment and
textile requests the managers as well as the enterprises community in
Vietnam to be clearly aware that the trend to increase the technical barriers
to international trade in general and to the garment and textile in particular
is indispensible, so they need to actively seek for measures to overcome
such challenges, promote the positive impact of the technical barriers in
order to improve the competitive capacity, promote the export of garment
and textile in Vietnam.
Thirdly, overcoming the technical barriers of the Vietnam’s
garment and textile enterprises must be carried out in compliance with the
Vietnam’s economic integration commitments, bilateral, regional and
multi-lateral trade agreements.
Fourthly, building and enhancing capacity to overcome the
technical barriers of the Government as well as the enterprises community
is a determinant to increase the export turnover and improve the efficiency
in exporting the garment and textile in the coming time.
3.2.3. Orientations to overcome the technical barriers to Vietnam’s
exporting garment and textile in the coming time
- Orientations from the Government: enhance the legal capacity and
State management capacity on technical barriers; strengthen signing and
joining bilateral, regional and multi-lateral trade agreements in order to have
more conditions to access to importing markets, reduce the technical barriers
to garment and textile in particular and to exports in general; promote the
international cooperation and make good use of the international supprt in
technical standards and specifications; improving the participation of
Vietnam’s garment and textile in the global garment and textile value chain,
attract more and more FDI from multinational/trans-national companies in
the garment and textile industry in Vietnam, especially in weaving and
dyeing fields; build ang implement strategies to improve the competative
capacity of Vietnam’s exporting garment and textile.
- Orientations from the enterprises: Be active in carry out full and
exact studies on information about the markets and technical barriers to the
exporting garment and textile to have appropriate and effective responses;
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enhance the connection among enterprises, connection and cooperation
between the enterprises and research institutes, State’s owned organizations in
foreign countries, and especially connection with importing clues for more
support and consultation; build and implement a sustainable export strategy
based on advanced technology, systems on quality control, labor management
and environmental management meeting the international standards.
3.3. MAJOR MEASURES TO OVERCOME THE TECHNICAL
BARRIERS TO THE VIETNAM’S EXPORTING GARMENT
AND TEXTILE
3.3.1. General measures
To overcome the technical barriers to exporting garment and textile,
it is required to promote strong changes in thinking, awareness of both the
Vietnamese Government and enterprises. This is the most fundamental and
important requirement and solution as well to ensure the capability to access
to the US, EU and Japan markets of the Vietnamese enterprises.
In addition, to make a successful overcoming, the Vietnamese
Government, Garment and Textile Association as well as Garment and
Textile enterprises should have specific appropriate measures.
3.3.1.1. For State Management Agencies:
In order to have the Vietnam’s garment and textile accepted and
consumed in all markets in the world without any difficulty caused by the
technical barriers, the Government needs to: (i) continue building and
completing the national standard system, more strictly monitor the
implementation of relevant standards by the enterprises; (ii) strengthen the
national information system on technical barriers, rapid and timely
propagation, introduction and dissemination of the technical barriers to
enterprises; (iii) support enterprises in settling business disputes; (iv) have
policies to provide practical and effective assistance in order to enhance the
capacity to overcome technical barriers of the enterprises; (v) The
Government should have appropriate supporting measures to improve
position of Vietnam’s garment and textile industry in the global garment
and textile value chain, (vi) establish a department to deliver early warnings
about the technical barriers.
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3.3.1.2. For garment and textile association:
As a bridge between the domestic enterprises and the foreign
markets, the Association plays a very important role in export and import of
Vietnamese enterprises as well as in settlement of disputes concerning
international trade in all aspects in general and in garment and textile
industry in particular. The Garment and Textile Association needs to: (i)
establish a department in charge of collecting and processing information,
connecting the national trade information system, timely notifying the
enterprises about exact information about the technical barriers of other
countries; (ii) improve the capacity of the Association.
3.3.1.3. For garment and textile enterprises
The garment and textile enterprises are the main subject in
overcoming the technical barriers. Together with the support and favorite
conditions provided by the Vietnamese Government and the Garment and
textile Association, such enterprises need to: (i) improve their awareness
and knowledge about the technical barriers imposed by developed
countries, be active in applying and managing according to the international
standards; (ii) diversify and develop new markets to overcome the technical
barriers, select the exporting markets which match their current capacity;
(iii) expand and strengthen connection among enterprises, economic
participants; (iv) build and implement a sustainable export strategy.
3.3.2. Measures to overcome specific technical barriers
3.3.2.1. For regulations and standards on product quality
To meet the increasing demand on product quality, it is required for
Vietnam to build and apply the system of international standards including
ISO 9000, 9001, 9002 to facilitate the Vietnam’s garment and textile to
become reliable products among consumers worldwide, promote the high
quality and performance program. To comply with the garment and textile
quality inspection procedure prior to exporting. The garment and textile
enterprises should work with the Customs authorities to inspect the
imported materials as well as equipment in order to ensure the product
quality right at the input stage.
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3.3.2.2. For regulations and standards on consumers’ safety.
The Government should organize exhibitions, introduction of safe
products to consumers; pay more attention to encourage a safe consumption
in order to raise the awareness of enterprises in producing safe products.
The Government also needs to establish an independent evaluation
organization which is capable of inspecting and certifying the satisfaction
of safety standards of the product, guiding the garment and textile
enterprises to implement relevant regulations in order to meet the
requirements on consumers’ safety of the importing countries.
The enterprises need to master regulations provided by importing
countries on consumers’ safety standards and strictly comply with such
regulations. They also need to propagate the importance of producing safe
products to their workers, so that they will be more careful and responsible
when producing safe products.
3.3.2.3. For regulations and standards on environment
People in developed countries consider any environment as their
common environment, so if one product contaminates the environment in
Vietnam, it also contaminates their common environment and then it will
not be accepted. Following are measures to overcome such barriers:
- To build the garment and textile industrial clusters. The
Government plays a very important role in developing such industrial
clusters, attracting investment in production of raw and auxiliary materials,
especially in stages of weaving, dyeing and finishing. The biggest issue
raised by the weaving and dyeing processes is waste water treatment.
Therefore, it is required for the Government to plan and construct cluster of
weaving and dyeing factories to have the best waste water treatment system
in order to attract more FDI, meeting the demand on environmental
standards applied by importing countries.
- The garment and textile enterprises should enhance their chemical
management, apply cleaner production programs: during implementation of
the environmental management system, it is required to review chemicals,
dyes, auxiliary substances on use and their origins, Material Safety Data
Sheets provided by their suppliers; implement programs of cleaner
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production: appropriate, economical and effective use of the environment-
friendly chemicals and dyes, technologies of water and enery saving, low
waste water and emmissions.
3.3.2.4. For regulations and standards on social responsibility
To orient and facilitate the enterprises to well fulfill their social
responsibility, the Government as well as garment and textile enterprise
should implement some measures as following: to strengthen the
propaganda so that all people, especially those working in the enterprises,
macro policy makers and managers can properly understand nature of
“social responsibility” and codes of behavior. Viet Nam need to carry out
basic studies and fields surveys at enterprises which have implemented or
will implement the codes of behavior, in order to identify advantages as
well as barriers, difficulties and challenges, accordingly recommending
measures to be applied in the coming time…. In these processes, the
Garment and textile Association, Vietnam Chamber of Commerce and
Industry, ministries and agencies play a very important role.
3.3.2.5. For regulations and standards on garment and textile labeling
The Vietnamese Government and Garment and textile Association
should carry out further negotiations with importing countries to reduce
more-than-necessary regulations and ensure a better transparency of
regulations on labeling provided by the importing markets.
The enterprises should study and learn more about the reasonable
regulations and standards on labeling provided by the importing markets
relating to fiber components, origin, and user manual in order to have
measures to adapt to and satisfy such standards and regulations.
3.3.2.6. For regulations on garment and textile origin
For the Government, to quickly establish auxiliary industries to
support the garment and textile industry and others as well. The
Government should have a specific scientific plan stating areas to grow,
produce and supply auxiliary materials to the garment and textile industry;
build centers to produce and trade raw and auxiliary materials, have plan to
call for investors from Hongkong, Taiwan, Japan to join the development
of such centers, and investment in equipment for producing raw and
auxiliary materials in Vietnam, in order to stabilize the market
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The Vietnam’s garment and textile enterprises should actively use
and invest in domestic production of raw materials to reduce their
dependence on foreign countries as well as self-control quality of their
products. The garment and textile enterprises should invest in producing raw
and auxiliary materials to self-supply raw materials for their production.
CONCLUSION
In the current context of deep globalization and regionalization,
together with the trade liberalization trend with a reduction and removal of
traditional tariff barriers, an increasing development of technical barriers
becomes an unavoidable trend.
From a conflict between the increasing use of technical barriers of
the developed countries which has prevented the Vietnam’s export of
garment and textile and Vietnam’s weak capacity to overcome such
technical barriers while making continual efforts to promote its export of
garment and textile to such markets, I have decided to do my dissertation
on “Technical barriers to the exporting garment and textile and solutions of
Vietnam” in order to study, clarify the theoretical and practical bases for
recommendation of measures to overcoming the technical barriers imposed
by importing countries, promoting the export of garment and textile in
Vietnam. Following are the main results of my dissertation:
Firstly, my dissertation has systemized and clarified some
theoretical issues concerning the technical barriers and overcoming the
technical barriers to exporting garment and textile.
Secondly, my dissertation has studies the experience in overcoming
the technical barriers to exporting garment and textile of some countries
such as China, India and Thailand at both national and enterprise levels,
with a focus on supporting measures of the Government as well as efforts
to overcome the technical barriers of the enterprises, drawn lessons which
should and should not be applied to Vietnam.
Thirdly, my dissertation has provided a deep analysis and
assessment of real situation of export and use of technical barriers of major
importing countries and their impacts on Vietnam’s export of garment and