The Problems Experienced in the Exportation to Vietnam will be Discussed
Turkey, which made an import volume about $ 1 billion per year from Vietnam, made an export volume of $ 100 million in total to this country.
Vietnam, which is an outstanding country of the Far East in recent years, provides great opportunities for investors with its stable growth. 1The effects of the war, which started in 1955 and lasted until 1975, were changed with the economic reforms made by Doi Moi in 1986; the country started to grow stronger and it has doubled the GDP especially in last 6 years. Despite all these developments, Vietnam, which has needs in many sectors especially in the food and textile sectors, has a central location among such countries as Laos, Cambodia, Thailand and Burma. According to data achieved in 2011, Turkey, which made an import volume about $ 1 billion per year from Vietnam, made an export volume of $ 100 million in total to this country.
On 15-16 January 2014, Turkey-Vietnam Joint Economic Commission (JEC) 6th Term Meeting will be held Arınç as co-president with the participation of Bülent Arınç for overcoming the problems experienced in the exportation to Vietnam. In the meeting, the exporters making business with Vietnam will report their problems to the General Secretary of ITKIP (Istanbul Textile and Apparel Exporters Association) until 20 December 2013.
There is a shortage of raw materials in Vietnam
Vietnamese textile and apparel firms have been affected negatively from global cotton market failure which occurs in short supply and price increase. Cotton production is getting less from various reasons in the world's major cotton exporters USA and China. Increasing prices of cotton, is putting in difficult situation textile manufacturer countries like Vietnam whose is raw materials depend on import.
Vietnam, which wants to overcome the raw material problem, is planning to expand cotton planting areas. The country's annual production which is 10 thousand tons of cotton, is only providing 2% of local textile sector demand which needs more than that. However, the government has prepared a rescue plan in order to support Vietnam's textile and garment industry. In this context, VAT rates were reduced and bank loans have provided incentives.
