In order to reduce the fierce competition that Vietnamese domestic products face from imported products and increase the sales volume of domestic products, the Ministry of Industry and Commerce of Vietnam plans to increase the import tax on polyester staple fiber (Polyesterstaplefibre) from zero tariff to 2%. The tariff numbers of the imported tax adjusted products are 55.01, 55.02, 55.03, 55.04, 55.06, and 55.07 respectively.
According to the Ministry of Industry and Commerce of Vietnam, Vietnam imports approximately 150,000 metric tons of fiber every year, but domestic manufacturers in Vietnam have not yet reached their maximum production capacity. The products of PVTEX, the largest fiber manufacturer, are difficult to compete with imported goods, so the manufacturer only has 50% of its designed production capacity.
Due to the decline in international oil prices, the price of polyester short fiber has also dropped sharply. The price of PVTEX has dropped from US$1,340 per metric ton to US$970 in 2014. It is still difficult to compete with imported products. The current sales price is even lower than that of the product. production price.
The Ministry of Industry and Commerce of Vietnam stated that Vietnam is currently conducting TPP consultations, which require yarn-forward origin standards. In order to enhance the competitiveness of Vietnam’s textile industry, it is extremely important to encourage the use of domestically produced fibers.
