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    Vietnam Plans To Cut Cotton Value-Added Tax By Half To 5%

    2009/3/6 0:00:00 38

    On Thursday, an industry official said that Vietnamese Prime Minister Nguyen Tan Dung asked the Ministry of finance to consider reducing the value added tax of cotton by half, from 10% to 5%.

    Le Quoc An, President of the Vietnam textile and Garment Association, said the new tax rate would apply to domestic cotton and imported cotton.

    The move aims to help the textile and garment industry overcome the financial crisis and complete the export target of US $9 billion 500 million this year.

    Dung also asked the central bank to act as a soft loan for Vietnam textile and clothing company for 15 million dollars, for importing cotton.

    Last month, the government reported that garment and textile exports increased by 0.7% to 1 billion 270 million US dollars in the first 2 months of this year.

    Clothing products are Vietnam's second largest export earning products, second only to crude oil.

    Last year, clothing exports increased by 17.5% to $9 billion 110 million.

     

    Editor in chief: Xu Qiyun

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