EU Cancels GSP Treatment In Vietnam

In the period of sales tax, it is necessary to strengthen the sale of other overseas footwear markets. According to the Vietnam footwear industry and Leather Association (LEFASO), Vietnamese footwear manufacturers should take measures to manage enterprises synchronously, so as to reduce the cost of expenditure and strengthen the promotion of trade promotion and the new market of footwear. This can be regarded as a necessary measure for Vietnam's footwear exports to the European Union to face the difficulty and maintain the competitiveness of the international market of the product.

According to Vietnam's Ministry of industry and commerce, the Italy Footwear Industry Association (ANCI) has 850 member manufacturers to formulate plans to request the European Commission to export products to the European Union (EU) and Mainland China (ATHLETIC) products, and extend the time limit for the application of anti-dumping duties (which will be full on October 2008). According to the chairman of ANCI, the proposal will extend the implementation of this case for more than 5 years. According to EU regulations, the EU shoe manufacturer should propose the extension of the case before July 7th of this year. The EU will have 12 to 15 months from October 2008 to 7, so as to carry out the anti-dumping investigation work in this case.

Although Vietnam's export footwear to the EU is subject to EU anti-dumping sanctions trade measures in 2006, Vietnam's footwear exports to the EU continued to grow last year. According to the EU Commission statistics, Vietnam exported $2 billion 170 million footwear to the EU last year, up 10.6% from 2006.

In response to ANCI's proposed tax increase section B, up to now, Vietnamese shoe makers have not had any positive response, and the most concerned issue at present is whether the EU has deleted the preferential tariff rate of GSP.

According to LEFASO, it is possible for some foreign shoe importers to pfer orders to other countries so that they can enjoy the preferential tariff rate. If the EU agrees to extend the time limit for anti-dumping duties, it will have an impact on Vietnamese shoe workers.

The Ministry of industry and Commerce in Vietnam will export $4 billion 500 million in footwear this year, up 12.7% from last year, and the EU will account for 7% to 8% (which has declined compared with 2007).

Vietnam's footwear industry is likely to face the problem of the EU's abolition of GSP treatment and the extension of the anti-dumping duty period.