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EC decision stamps on Vietnam’s footwear industry
Deputy Minister of Industry and Trade Nguyen Thanh Bien says the European Commission’s decision to remove imported Vietnamese-made footwear from its generalised system of preferences (GSP) will have negative impacts on Vietnamese footwear workers.
Speaking to the press, the deputy minister added that the industry workforce is mainly women earning low incomes.
“Additionally, the decision would cause more serious economic consequences in the context when the EU has been levying an anti-dumping tariff on Vietnam ’s exported leather-capped shoes,” Bien said.
He also said the decision would not only affect Vietnam but also EU businesses working in the country and EU consumers who have the right to purchase quality products at reasonable prices.
“We are totally disappointed with the EC’s decision as Vietnam is a developing country at a low level with per-capita per-annum average income below 1,000 USD but its footwear industry is unable to continue enjoying the EU’s preferential treatment,” Bien said.
The Deputy Minister said top Vietnamese leaders and officials have sent letters to relevant EU officials saying the EU’s argument was unreasonable and unjust and asking them to recheck information and data.
The EC rules that any country whose exports of a group of products exceed 15 percent of total EU imports of the same products under GSP over 3 consecutive years is considered to have reached a certain level of competitiveness and doesn’t need preferential tariffs.
However, that country can enjoy the GSP if its export revenues, though exceeding the 15 percent benchmark, represent more than 50 percent of its export revenues benefitted from GSP.
Bien said Vietnam was in this category and that the EU was unfair in its statistics, showing that Vietnam ’s footwear exports to the EU was below 50 percent of the country’s GSP-enjoying exports.
According to Bien, many EU member countries have disagreed with the EU’s calculation and some have suggested solutions for this problem but the EC have not accepted.
The EC is slated to drop imported Vietnamese footwear from the GSP list between 2009 and 2011.
VNA
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