Textile exports enjoy 0% tax rate
To enjoy preferential tax rates, raw materials used must be produced in the home country or in TPP member countries.
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The 15th round of negotiations for the Trans-Pacific Partnership (TPP) is entering its final stages. Vietnamese textile and garment exporting enterprises expect to enjoy a preferential tax rate of 0% when entering markets that are partners in the agreement. This will be a great opportunity for Vietnamese textile and garment enterprises in the process of global integration.
One of the basic principles to enjoy preferential tax rates when exporting textiles and garments to countries participating in the Trans-Pacific Partnership Agreement is that the raw materials used are produced in the host country, or use raw materials from member countries participating in the Agreement. Therefore, textile and garment enterprises are making efforts to increase the localization rate to enjoy this incentive.
Mr. Le Tien Truong, Deputy General Director of Vietnam Textile and Garment Group, said that although domestic enterprises are constantly trying to increase the localization rate of products, it is still low compared to the requirements. Therefore, investment resources of foreign enterprises are expected to create a breakthrough in the localization rate of Vietnamese garment products.
The Government has just approved the Strategy for the Development of the Vietnamese Textile and Garment Industry to 2020. The Strategy clearly identifies the creation of a supply chain linking businesses, from spinning, weaving, designing, sewing to sales, as the most important factor for Vietnamese textile and garment exporting businesses to enjoy the incentives of the Trans-Pacific Partnership.
“The preparation roadmap of the textile and garment industry over the past years for the new international integration situation has focused on improving domestic added value, increasing the level of initiative in all stages, especially the design and preparation of raw materials. This process has been going on for decades, since the Government prepared to negotiate bilateral FTAs with the United States, WTO and now TPP. These preparations over the years have gradually improved the added value of the textile and garment industry, from only 25-30% localization, now we have approximately 50% localization” - Mr. Le Tien Truong added./.
According to (vov.vn) - LT
