Experts have forecast that heavy pressure is in store for Vietnamese footwear exports to the European Union (EU) market in 2009, when the tariff is raised, the VietNamNet reported.
While the anti-dumping tax on leather-capped shoes exports to the bloc is already burdening Vietnamese enterprises, on January 1, 2009, Vietnamese enterprises will face a new challenge: EU import countries will remove the GSP (Generalized System of Preferences) on Vietnamese products.
Nguyen Thi Tong, Deputy Chairwoman of the Vietnam Leather and Footwear Association (Lefaso) said when the GSP is removed, the tax rate will be raised from 4.5 per cent to 8 per cent on leather-capped shoes, from 7.5-8 per cent to 11.5 per cent on leatherette shoes, and from 11.5 per cent to 17 per cent on canvas shoes.
Vietnamese enterprises will have a lot of difficulties in getting orders, maintaining production and ensuring production and incomes for laborers.
According to Tong, the GSP will be removed from 2009 to 2011. After that, the European Commission (EC) will consider whether to reinstate it or not.
In January 2009, a delegation of experts from EC will start the anti-dumping investigation against Vietnam-made leather-capped shoes, said Bui Son Dung, Deputy Director of the Competition Administration Department (CAD) under the Ministry of Industry and Trade.
Dung added that this will be the final check in consideration of whether to remove the anti-dumping tax.
EC schedules to make the final decision in mid 2009. Until the final decision is made, Vietnamese exporters will still bear the current anti-dumping tax rates.
Three Vietnamese enterprises have been selected for the investigation. (VietNamNet)
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