Investigation of dumping of imported filament yarn proposed

Wednesday, Feb 25, 2015 15:21

Vietnamese filament yarn producers are facing fierce competition from regional countries. — Photo
HA NOI (Biz Hub) — The Viet Nam Cotton and Spinning Association has proposed anti-dumping investigation of filament yarn imported from several countries and territories, to create a more equal competitive environment for local producers.

In a document sent recently to the Prime Minister and the Industry and Trade Ministry, the association said that dumping of filament yarn imported from Thailand, China, India and Malaysia, besides Taiwan has reportedly been practised for several years.

The association added that Vietnamese businesses are capable of producing these products to meet the local market demand. However, unequal competition from foreign producers has caused difficulties for local businesses, forcing them to sell at a loss to keep their market shares.

If the dumping continues, it will seriously affect the operation and development of local producers, and will also annul the economic profits gained from Viet Nam's participation in free-trade agreements, it pointed out.

The association requested the Prime Minister, leaders of the Industry and Trade Ministry and the ministry's department of competition management to guide and support procedures needed to start the anti-dumping investigation on imported filament yarn with the commodity codes of 5402.33 and 5402.47.

The production cost of local businesses is estimated to range between US$1.78 and $1.98 per kg of filament yarn.

The development of the spinning production sector is an important measure to help tackle difficulties for the country's garment and textile supply chain, at a time when Viet Nam has basically completed negotiations to sign multiple trade agreements soon, such as free trade agreements and the Trans-Pacific Partnership, the association said.

The country reaped a filament yarn export turnover of $2.53 billion last year, a year-on-year increase of 17.71 per cent.

The association added that it is necessary to curb dumping as soon as possible to create an equal competitive environment between foreign and domestic businesses.

Only by doing that can local businesses improve their competitive advantage and increase the added value of garment exports of Viet Nam, it said.

Filament yarn consists of filament fibres (very long continuous fibres), either twisted together or grouped together. Thicker monofilaments are typically used for industrial purposes rather than for fabric production or decoration. Silk is a natural filament, and synthetic filament yarns are used to produce silk-like effects.— VNS

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