Tóm tắt Luận án Technical barriers to exporting garment and textile and solutions of Vietnam

the Vietnam’s garment and textile in order to provide a scientific foundation for negotiating, expanding the market access of the garment and textile products and recommend appropriate measures to overcome such technical barriers in order to promote the export of garment and textile, contributing to fulfilling the import and export strategic objective and development strategy until 2020. 2 2. Study objectives and tasks Study objectives: To clarity the scientific basis (both theoretical and practical) to recommend measures to overcome the technical barriers of importing countries, promote the export of garment and textile in Vietnam. Study tasks: In order to fulfill the study objectives, my dissertation will mainly focus on the following tasks: Firstly, clarify theoretical issues concerning technical barriers and overcoming technical barriers to export of garment and textile. Secondly, study experience of some countries in the world in overcoming technical barriers to the garment and textile and draw lessons for Vietnam. Thirdly, analyze and assess the export status of Vietnam’s garment and textile in recent years. Fourthly, analyze the system of technical barriers of some major markets of the exporting garment and textile and impact of the technical barriers on the Vietnam’s garment and textile; analyze the status of overcoming technical barriers of Vietnam during past time; assess its achievements as well as shortcomings and their causes. Fifthly, study and analyze the context as well as prospect of export of garment and textile in Vietnam until 2020, accordingly propose orientation and measures at both macro and micro levels to enhance the capacity to overcome the technical barriers and promote the export of garment and textile in Vietnam. 3. Study subjects and scope Study subject: My dissertation will focus on studying the technical barriers to the exporting garment and textile. Study scope: My dissertation will focus on studying the technical barriers to the garment and textile imposed by importing countries, as well as policies and measures applied by Vietnam to overcome such technical barriers, accordingly recommend measures to enhance the capacity to overcome such technical barriers, promote the export of garment and textile 3 in Vietnam. Regarding space: my dissertation will focus on 3 major importing markets of Vietnam which are United States of America, EU and Japan; studying the capacity to overcome the technical barriers of Vietnam’s garment and textile at national level on both macro and micro basis (State and Enterprise). Duration: study the technical barrier overcoming during 2007-2013 and recommend measures until 2020. 4. Study method General methodology: My dissertation is made based on methodology of the Marxism-Leninism in combination with viewpoints, guidelines and policies on socio-economic development of the Communist Party and the Government as well. Specialized methods: study secondary documents; make statistics and comparison; ask for ideas of experts as well as enterprises; carry out sociological surveys, gather, analyze and evaluate the findings. 5. New contributions of the Dissertation: Firstly, the dissertation has a new approach, studies the technical barriers in an active manner; considers the technical barriers as appropriate and scientific regulations and standards, binding countries, importers and exporters to comply on both macro and micro basis (the State and Enterprise). Secondly, the dissertation has systemized and clarified some theoretical issues relating to the technical barriers to exporting garment and textile, explained the definition of technical barrier and presented its author’s viewpoint about classification of major technical barriers to the exporting garment and textile; recommend measures to overcome the technical barriers in a positive manner; analyze factors impacting the capacity to overcome the technical barriers of garment and textile exporting countries. Thirdly, my dissertation has studied the experience in overcoming technical barriers to the exporting garment and textile of some countries including China, India and Thailand on both State and enterprise levels in order to draw lessons for Vietnamese Government as well as garment and textile enterprises. Fourthly, my dissertation has evaluated the real use of technical barriers of the major importing countries and their impacts on export of 4 garment and textile of Vietnam. The dissertation has also analyzed and evaluated the capacity to satisfy as well as measures to overcome the technical barriers to the exporting garment and textile of the Vietnamese government as well as enterprises. Fifthly, the dissertation has recommended 4 viewpoints; orientations to overcome the technical barriers which should be applied by the Government as well as the enterprises. The dissertation has also recommended general methods to overcome the technical barriers to the exporting garment and textile of Vietnam until 2020. 6. Dissertation structure In addition to the Introduction, Study Overview, Conclusion, References and Appendix, my dissertation is divided into 3 chapters as following: Chapter 1. Theoretical basis of technical barriers and overcoming technical barriers to export of garment and textile. Chapter 2. Status of technical barriers to the exporting garment and textile of Vietnam and measures to overcome such barriers. Chapter 3. Viewpoints, orientations and measures to overcome the technical barriers to promote export of garment and textile until 2020. STUDY OVERVIEW In the current context of deep globalization of the international economy and increasingly developed science and technology, the technical barriers in general and technical barriers to trade in particular have increasingly diversified. The technical barrier to trade is one of the big issues of the current international trade. It has been put in many studies at both national and international levels. The World Trade Organization (WTO) has an Agreement on Technical Barriers to Trade - TBT, Agreement on sanitary and phytosanitary measures - SPS in order to prevent countries from taking advantage of SPS technical standards and regulations for trade protection, preventing free trade; bilateral Free Trade Agreements (FTAs) and Regional Trade Agreement (RTAs) contain 5 regulations on TBT and SPS, etc. in order to facilitate the trade. All members of WTO and FTAs as well as RTAs have their TBT and SPS offices to monitor, supervise and coordinate the TBT and SPS implementation, etc. By now, there have been many national and international studies on technical barriers to trade. However, as far as I know, until now, there has no study providing a systematic and full research on the technical barriers and measures to overcome such technical barriers to the garment and textile of Vietnam. The previous studies mainly focus on studying the technical barriers to exports of Vietnam in general or non-tariff barriers to a certain commodity without a deep analysis of technical barriers to one certain industry. The measures recommended by such studies are mainly for orientation which can be used for all commodities. Some studies have studied the technical barriers but the information provided by such studies is not sufficient and comprehensive, and especially such studies do not reflect and update the latest developments of the technical barriers - a field with regular appearance of new issues. STUDY CONTENT AND FINDINGS CHAPTER 1 THEORETICAL BASIS ON TECHNICAL BARRIERS AND OVERCOMING TECHNICAL BARRIERS TO EXPORT OF GARMENT AND TEXTILE 1.1. DEFINITION, CLASSIFICATION AND IMPACT OF TECHNICAL BARRIERS ON INTERNATIONAL TRADE. 1.1.1. Definition of technical barriers Although there are many definitions of technical barriers, in my opinion, technical barriers can be defined as following: Technical barriers to international trade are technical rules, standards and measures used by the importing country to prevent goods and services of foreign countries from meeting the requirements to enter the markets of importing country. 6 1.1.2. Classification of technical barriers Currently there are many ways to classify the technical barriers to trade. However, to fulfill the study objectives, establish the scientific foundation for recommending macro and micro measures to overcome the technical barriers to the exporting garment and textile of Vietnam, I will combines the classifications of both the Ministry of Industry and Trade and the enterprises with a highlight on regulations on origin of the using countries as a new technical barrier. Accordingly, the technical barriers to international trade can be classified into 6 categories, including: Regulations and standards on product quality; Regulations and standards on safety of consumers; Regulations and standards on environment; Regulations and standards on social responsibility; Regulations and standards on product labeling; Regulations on on product origin. This classification will be used throughout my study. 1.1.3. Impact of technical barriers on international trade Due to their diversity and flexibility, the technical barriers have a great impact scope. Most trade activities in the world have to face technical barriers. The reality shows that the technical barriers have impact on both importing countries and exporting countries on both positive and negative manners, on both importers and exporters. 1.2. TECHNICAL BARIERS TO THE EXPORTING GARMENT AND TEXTILE 1.2.1. Definition of technical barriers to the exporting garment and textile 1.2.1.1. Definition Technical barriers to the exporting garment and textile are technical rules, standards and measures used by the importing country to prevent garment and textile of exporting countries from meeting the requirements to enter the markets of the importing country. 1.2.1.2. Types of technical barriers to the garment and textile For exporting garment and textile, the technical barriers are also classified as technical barriers to exports in general in 1.1.2. They are: (i) regulations, standards and measures on: product quality, human safety and health, environment; social responsibility; garment and textile labeling; garment and textile origin. This classification has been used throughout my study. 7 1.2.2. Overcoming technical barriers to the exporting garment and textile 1.2.2.1. Definition Overcoming the technical barriers to exporting garment and textile is the implementation of strategies, measures to prevent, and event eliminate trade preventers caused by the technical barriers, bringing the garment and textile from the exporting countries to be used in the importing countries. Or in other words, overcoming the technical barriers to exporting garment and textile is the capacity and ability of the exporting countries (including garment and textile enterprises and exporting garment and textile) to meet and comply with the technical regulations and standards imposed by the importing countries on their importing garment and textile. 1.2.2.2. Measures to overcome the technical barriers to exporting garment and textile In this dissertation, I have approached the measures to overcome the technical barriers to exporting garment and textile in a positive and active manner, respecting interests of partners and complying with international commitments to protect their own interests. Overcoming the technical barriers to exporting garment and textile required an effort of the whole society which includes not only the enterprises, but also the Government and domestic and international civil social organizations. In which, main responsibility and cooperation of relevant parties to overcome the technical barriers can be carried in the following methods: Enterprise is the direct subject to overcome the technical barriers, meeting the technical requirements of the importing markets. The Government create favorable environment, instruct and support the enterprises to overcome the technical barriers. Association is bridge connecting the Government and enterprises so that they can work together to overcome the technical barriers to the exporting garment and textile. Cooperation between the Government and the enterprise community is form an integral part to overcome the technical barriers imposed by the importing markets. In addition, it is required to make use of international 8 cooperation and support to overcome the technical barriers imposed by the importing countries. 1.2.3. Factor impacting the capacity to overcome the technical barriers to exporting garment and textile of one country Overcoming the technical barriers to exporting garment and textile of one country depends on several factors which can be classified into two main groups: domestic and international factors. The international factors include: globalization and international economic integration; development of science and technology in the world; globalization and coordination of trans-government and global policies for a sustainable development. The domestic factors are: the national development and IT level; management capacity of the Government; capacity of the enterprises; cooperation among the Government - Enterpriese - Association, international connection and cooperation. 1.3. EXPERIENCE OF SOME COUNTRIES ON OVERCOMING THE TECHNICAL BARRIERS TO EXPORTING GARMENT AND TEXTILE AND LESSONS FOR VIETNAM. 1.3.1. Experience of some countries in the world 1.3.1.1. Experience of China - Measures to overcome the technical barriers approved by the Chinese Government are: enhance exchanges and negotiations among countries to reduce the technical barriers; establish the information collection and processing mechanism in the quickest way; enhance the macro regulations, standardize and develop the industry in a healthy manner; promote the international standards; propose many technical regulations and standards matching the international market; establish a special organization and carry out a serious research on TBT agreements; enhance training of human force. - Measures to overcome the technical barriers of the garment and textile enterprises in China include: improve quality and structure of products for exporting; build trademarks of China; training technical human force; comply with laws, reliable business regulations and management methods. 9 1.3.1.2. Experience of India - For the Government: support exporting enterprises in shipment inspection and have a favorable mechanism for certificate granting; apply measures imposed by other countries on India such as sue on dumping of other products. - For garment and textile enterprises in India: select a generation of new managers in garment and textile industry; approach and work with enterprises in relevant countries to reduce cost and technical barriers to garment and textile exported to big markets. 1.3.1.3. Experience of Thailand - For the Government, Thailand’s Government has requested its exporters to have their own certificate ensuring the national standards in order to improve the competitiveness of the exports; established a procedure to settle all TBT-related issues; applied measures imposed by other countries on Thailand such as sue for dumping of other products. - For garment and textile enterprises in Thailand: focus on investing in advanced technologies and equipment to carry out on-spot quality inspection, well meeting the technical standards of their partners. 1.3.2. Lessons for Vietnam 1.3.2.1. Applicable successful lesson China, India and Thailand are countries which share many similarities with Vietnam and they have enjoyed a high turnover from export of garment and textile to the international market. The study of experience of such countries on overcoming the technical barriers to exporting garment and textile has drawn some useful lessons as following: - For State management organizations: enhance the propagation and dissemination of laws, especially policies and regulations of the importing country; collect and process information about markets and trade policies of countries importing the garment and textile; innovate the state management, improve the State capacity on negotiation and settlement of trade disputes, Promote the scientific and technical progress, strengthen scientific and technical system, provide scientific and technical assistance; 10 establish quality inspection centers for export products, request exports to have certificate ensuring the national standards. - For garment and textile enterprises in Vietnam: be active and willing in implementing measures to respond to the technical barriers of exporting countries: carry out their production in combination with environmental protection, improve their social responsibility; invest in or cooperate with foreign enterprises in trade associations which see the participation of major importing countries in order to reduce the cost as well as technical barriers upon exporting of the garment and textile to big markets;. 1.3.2.2. Lessons which should not be applied Besides the applicable successful lessons, the above experience study also draws some lessons which should not be applied to avoid any unexpected risks and loss. They are, firstly, Vietnam should not retaliate upon importing countries. Secondly, Vietnam should not apply too fast development policy to exporters garment and textile. CHAPTER 2 STATUS OF TECHNICAL BARRIERS TO THE EXORTING GARMENT AND TEXTILE OF VIETNAM AND MEASURES TO OVERCOME SUCH TECHNICAL BARRIERS 2. 1. OVERVIEW ON CURRENT EXPORT OF GARMENT AND TEXTILE IN VIETNAM. 2.1.1. Status of export of garment and textile in Vietnam For export structure: the Vietnam’s garment and textile are mainly exported under form of outsourcing for foreign countries and their materials are mainly imported from other countries. In 2013, turnover from export of garment and textile accounts for over 96% of the total export turnover, in which turnover from export of outsourced products accounts for 75.3%, and turnover from export of finished products accounts for 21.2%. For export turnover: during 2011 – 2012, garment and textile is the industry gaining high export turnover, only following oil and gas industry. Export of garment and textile has been continually expanded and it has 11 become the industry of the highest export growth rate but its growth is mainly on quantity. On average, the turnover from export of garment and textile increases about 20% during this period. For export markets: The Vietnam’s garment and textile have been exported to 54 markets in the world and Vietnam is currently ranked on the top 5 exporters in the world, the second biggest exporter to US, the third biggest exporter to Japan and the ninth biggest exporter to EU. 2.1.2. General assessment of status of Vietnam’s export of garment and textile during past time. In recent years, the Vietnam’s garment and textile industry has experienced many difficulties, but it still overcomes and strives to gain major achievements. In addition to creating jobs for a great number of social workers, the garment and textile industry has also made a great contribution to development of the national economy. Export turnover garment and textile constantly increased over the years, become a garment and textile put in two main export commodity groups with the largest turnover of the Vietnam years, the foreign currency earner for soil water- resistant l c. calves n addition to these successes, there are still many difficulties and problems in exporting textiles. In addition to such achievements, there have been many difficulties and shortcomings in the garment and textile industry. 2.2. TECHNICAL BARRIERS OF MAJOR IMPORTING MARKETS AND THEIR IMPACTS ON VIETNAM’S GARMENT AND TEXTILE. 2.2.1 Technical barriers imposed by major importing markets on Vietnam’s garment and textile In this dissertation, I have studied the technical barriers imposed by three major markets to which the Vietnam’s garment and textile are exported, which are United States, EU and Japan. These markets shares the same categories of technical barriers to garment and textile as stated in 1.2.1.2. Based on the international regulations, especially regulations of WTO on the garment and textile, each country may add its own regulations which can be stricter than WTO’s regulations. 12 2.2.2. Assessment of impacts of the technical barriers imposed by major importing markets on the Vietnam’s garment and textile. The technical bariers imposed by the importing markets have a great impact on the Vietnam’s garment and textile in both positive and negative manner. - Positive impacts: the technical barriers have promoted the in- depth investment, improved the quality and competative capacity of the Vietnam’s garment and textile, protected the Vietnam’s environment; contributed to better protecting the labor force; prevented the trade fraud in export; promotedchanges in managers’ viewpoints; improved the capacity on discussion, negotiation and settlement of international disputes. - Negative impacts: The technical barriers are no longer a risk, they have had significant negative impacts on the Vietnam’s garment and textile, including: increasing costs (both production cost and export cost), decrease the competitive capacity of the Vietnam’s garment and textile, losing the international market share. They have impacts on a large scale, not only the garment and textile industry, but also industries of printing and dyeing, chemicals, fiber and raw materials, reducing the income of such industries; leading to a yaw of trading of garment and textile in Vietnam; indirectly causing difficulties for the labor force in Vietnam; restructuring the garment and textile supply chain under the impact of the technical barriers from the major importing markets. 2.3. STATUS OF OVERCOMING THE TECHNICAL BARRIERS TO VIETNAM’S GARMENT AND TEXTILE DURING PAST TIME 2.3.1. Application of measures to overcome the technical barriers to Vietnam’s exporting garment and textile. 2.3.1.1. Measures to overcome the technical barriers applied by Vietnam’s garment and textile enterprises Firstly, in order to satisfy the technical barriers imposed by importing countries, the Vietnam’s garment and textile enterprises have actively approached requirements of the importing countries, established management system to ensure compliance to product quality, safety, environment, social liability and product labeling. 13 Secondly, many big garment and textile enterprises have their interest closely associated with importing countries in order to reduce the impacts of technical barriers imposed by the importing countries. The Vietnam’s enterprises have worked with enterprises in United States, EU and Japan in production and distribution of garment and textile, which have helped Vietnam’s enterprises to avoid some barriers. 2.3.1.2. Government’s measures and policies to support enterprises to overcome the technical barriers to garment and textile The enterprises play the main role in implementing measures to overcome the technical barriers; however the assistance as well as favorable conditions provided by the Government also plays an important role. In recent years, together with the efforts of the garment and textile enterprises, the Government has: provided the enterprises with information about the exporting markets; promoted negotiation, signing and joining bilateral, regional and multi-lateral trade agreements; provided supporting forces; completed the legal system and state management apparatus on technical standards and regulations and procedure to assess the compliance to commitments in TBT agreements of WTO and other international commitments; participated in settlement of trade disputes, eliminated the technical barriers imposed by some countries on advantaged garment and textile of Vietnam. 2.3.2. Evaluation of measures to overcome technical barriers to Vietnam’s exporters garment and textile during past time. 2.3.2.1 Achievements: The figures on turnover from Vietnam’s export of garment and textile to other markers have shown a continuous effort of the enterprises in satisfying the technical barriers. - Awareness of Vietnam’s enterprises of the technical barriers have been clearly improved: many enterprises after a long participation in export of garment and textile said that they have get used to satisfying the 14 regulations of the exporting markets and also paid attention to meet the customers’ demands. - The capacity to satisfy the technical barriers of Vietnam’s garment and textile enterprises has become much better. Since joining WTO, the Vietnam’s enterprises have had more favorable conditions and got used to strict regulations of the difficult markets, had more experience in response to the technical barriers in order to promote the export of garment and textile to big importing markets such as US, EU and Japan and better access to other markets such as South Korea and Canada. The study and surveys for ideas of the garment and textile enterprises have shown that the Ministries, agencies and organizations have provided a great support to the garment and textile enterprises to overcome the technical barriers. The Vietnam’s garment and textile exporters have highly appreciated the role of garment and textile management agencies, the Ministry of Industry and Trade, the Ministry of Science and Technology which have closely monitored, supervised, provided information about regulations of importing countries, urged the enterprises to strictly comply with such regulations. 2.3.2.2 Shortcomings In addition to achievements gained by the Vietnam’s Government and garment and textile enterprises as stated above, there have been many shortcomings as following: - For garment and textile enterprises: Firstly, despite significant improvement in awareness of the garment and textile enterprises, there have still been many shortcomings. The survey findings have shown that in addition to enterprises which are aware of the importance of studying regulations of the importing markets, many enterprises, especially small-scale ones have not paid much attention to this issue. This may result in a big disadvantage for enterprises which want to expand their market or share risks in export. 15 Secondly, capacity to satisfy the technical barriers imposed by the importing countries of Vietnam’s garment and textile enterprises is limited. The current requirements of the importing countries have become increasingly stricter, but the enterprises have a limited capacity, and as a result, they have been facing difficulties in many aspects. - For State management agencies, their measures to facilitate and support the garment and textile enterprises to overcome the technical barriers contain many shortcomings as following: Firstly, non-compliance with the international standards and regulations of the importing countries. Since many national standards do not match the international standards, the enterprises have to apply many standards at the same time: international standards, national standards and standards of importing countries. This is a big preventer for enterprises. Secondly, weak propagation and dissemination of provisions of TBT agreements and regulations applied by the importing countries. Thirdly, many shortcomings in cooperation among State management agencies from Central to local level. 2.3.2.3. Causes. Firstly, such shortcomings are caused by the Government and State management agencies, due to: insufficient, in-consistent system of legal documents and by laws with a low enforcement; weak economic development, outdated science and technologies, lack of standard laboratories; limited policies and forces of the State in supporting he overcoming of the technical barriers to the garment and textile; weak capacity of the Government in negotiating and settling disputes relating to the technical barriers to garment and textile; no methodical and scientific master strategy to improve the competitive capacity of the exporting garment and textile in Vietnam. Secondly, the shortcomings are caused by the Garment and textile Association: the Vietnam Garment and Textile Association has not fulfilled 16 its role in response to the technical barriers to trade imposed by foreign countries. The Association is still weak in organization, financial potential and specialized capacity and its connection is still loose. Working as a representative for interests of the enterprises and being responsible for supporting the enterprises to deal with the technical barriers of foreign countries, but in reality, the Vietnam garment and textile association has not fulfilled its tasks yet. Thirdly, the shortcomings are also caused by the garment and textile enterprises in Vietnam: Many enterprises have no access to regulations and standards of the importing countries. Measures to deal with the technical barriers applied by the enterprises in Vietnam are mainly to respond rather than to prevent; the internal capacity of the enterprises is limited; connection among Vietnam’s garment and textile enterprises to overcome the technical barriers is weak; many enterprises have no long- term business strategy and plan. CHAPTER 3 VIEWPOINTS, ORIENTATIONS AND MEASURES TO OVERCOME THE TECHNICAL BARRIERS TO PROMOTE EXPORT OF GARMENT AND TEXTILE IN VIETNAM UNTIL 2020 3.1. DEVELOPMENT TREND OF THE TECHNICAL BARRIERS AND ABILITY TO APPLY THE TECHNICAL BARRIERS OF THE MAJOR IMPORTING MARKETS TO THE VIETNAM’S EXPORTING GARMENT AND TEXTILE ULTIL 2020 3.1.1. Development trend of the technical barriers in the world Firstly, the technical barriers in the world will be quickly developed in quantity and increasingly diversified in the coming time. Secondly, the technical barriers will be stricter and more complicated. Thirdly, the technical barriers will be expanded from a certain product to the whole production process. 17 3.1.2. Trend to apply the technical barriers of the major importing markets of the Vietnam’s garment and textile The researches and consultation with experts about the technical barriers have clearly shown a trend to apply technical barriers of the importing countries to the Vietnam’s exporting garment and textile as following: regulations on quality standards will be gradually transformed into mandatory standards; regulations on consumption safety will become stricter and be integrated into many other barriers; regulations on environmental protection, standards on labor force and social responsibility will draw more and more attention and become mandatory standards; regulations on product labeling will become more and more complicated; regulations on product origin will become more and more complicated and become new barriers. 3.2. VIEWPOINTS AND ORIENTATIONS TO OVERCOME THE TECHNICAL BARRIERS TO THE VIETNAM’S EXPORTING GARMENT AND TEXTILE ULTIL 2020 3.2.1. Prospects for export of garment and textile in Vietnam until 2020 The Vietnam’s garment and textile development strategy until 2015, with a vision to 2020 requires big adjustments to match the real situation and new trends. The Ministry of Industry and Trade has approved the garment and textile development plan until 2020, with a vision to 2030, and is implementing the exporting and importing strategy for the period of 2011-2020, with orientation to 2030, accordingly, it is expected to have export turnover of the garment industry reached US $36- 38 billion in 2020, and reached UD $64-67 billion in 2030, corresponding to a localization rate of 65 and 70%. 3.2.2. Viewpoints to overcome the technical barriers to the Vietnam’s exporting garment and textile Firstly, overcoming the technical barriers to the garment and textile is to fulfill the strategic objectives of the garment and textile until 2015, with a vision to 2020 and the garment and textile development plan until 2020, with a vision to 2030. 18 Secondly, overcoming the technical barriers to the garment and textile requests the managers as well as the enterprises community in Vietnam to be clearly aware that the trend to increase the technical barriers to international trade in general and to the garment and textile in particular is indispensible, so they need to actively seek for measures to overcome such challenges, promote the positive impact of the technical barriers in order to improve the competitive capacity, promote the export of garment and textile in Vietnam. Thirdly, overcoming the technical barriers of the Vietnam’s garment and textile enterprises must be carried out in compliance with the Vietnam’s economic integration commitments, bilateral, regional and multi-lateral trade agreements. Fourthly, building and enhancing capacity to overcome the technical barriers of the Government as well as the enterprises community is a determinant to increase the export turnover and improve the efficiency in exporting the garment and textile in the coming time. 3.2.3. Orientations to overcome the technical barriers to Vietnam’s exporting garment and textile in the coming time - Orientations from the Government: enhance the legal capacity and State management capacity on technical barriers; strengthen signing and joining bilateral, regional and multi-lateral trade agreements in order to have more conditions to access to importing markets, reduce the technical barriers to garment and textile in particular and to exports in general; promote the international cooperation and make good use of the international supprt in technical standards and specifications; improving the participation of Vietnam’s garment and textile in the global garment and textile value chain, attract more and more FDI from multinational/trans-national companies in the garment and textile industry in Vietnam, especially in weaving and dyeing fields; build ang implement strategies to improve the competative capacity of Vietnam’s exporting garment and textile. - Orientations from the enterprises: Be active in carry out full and exact studies on information about the markets and technical barriers to the exporting garment and textile to have appropriate and effective responses; 19 enhance the connection among enterprises, connection and cooperation between the enterprises and research institutes, State’s owned organizations in foreign countries, and especially connection with importing clues for more support and consultation; build and implement a sustainable export strategy based on advanced technology, systems on quality control, labor management and environmental management meeting the international standards. 3.3. MAJOR MEASURES TO OVERCOME THE TECHNICAL BARRIERS TO THE VIETNAM’S EXPORTING GARMENT AND TEXTILE 3.3.1. General measures To overcome the technical barriers to exporting garment and textile, it is required to promote strong changes in thinking, awareness of both the Vietnamese Government and enterprises. This is the most fundamental and important requirement and solution as well to ensure the capability to access to the US, EU and Japan markets of the Vietnamese enterprises. In addition, to make a successful overcoming, the Vietnamese Government, Garment and Textile Association as well as Garment and Textile enterprises should have specific appropriate measures. 3.3.1.1. For State Management Agencies: In order to have the Vietnam’s garment and textile accepted and consumed in all markets in the world without any difficulty caused by the technical barriers, the Government needs to: (i) continue building and completing the national standard system, more strictly monitor the implementation of relevant standards by the enterprises; (ii) strengthen the national information system on technical barriers, rapid and timely propagation, introduction and dissemination of the technical barriers to enterprises; (iii) support enterprises in settling business disputes; (iv) have policies to provide practical and effective assistance in order to enhance the capacity to overcome technical barriers of the enterprises; (v) The Government should have appropriate supporting measures to improve position of Vietnam’s garment and textile industry in the global garment and textile value chain, (vi) establish a department to deliver early warnings about the technical barriers. 20 3.3.1.2. For garment and textile association: As a bridge between the domestic enterprises and the foreign markets, the Association plays a very important role in export and import of Vietnamese enterprises as well as in settlement of disputes concerning international trade in all aspects in general and in garment and textile industry in particular. The Garment and Textile Association needs to: (i) establish a department in charge of collecting and processing information, connecting the national trade information system, timely notifying the enterprises about exact information about the technical barriers of other countries; (ii) improve the capacity of the Association. 3.3.1.3. For garment and textile enterprises The garment and textile enterprises are the main subject in overcoming the technical barriers. Together with the support and favorite conditions provided by the Vietnamese Government and the Garment and textile Association, such enterprises need to: (i) improve their awareness and knowledge about the technical barriers imposed by developed countries, be active in applying and managing according to the international standards; (ii) diversify and develop new markets to overcome the technical barriers, select the exporting markets which match their current capacity; (iii) expand and strengthen connection among enterprises, economic participants; (iv) build and implement a sustainable export strategy. 3.3.2. Measures to overcome specific technical barriers 3.3.2.1. For regulations and standards on product quality To meet the increasing demand on product quality, it is required for Vietnam to build and apply the system of international standards including ISO 9000, 9001, 9002 to facilitate the Vietnam’s garment and textile to become reliable products among consumers worldwide, promote the high quality and performance program. To comply with the garment and textile quality inspection procedure prior to exporting. The garment and textile enterprises should work with the Customs authorities to inspect the imported materials as well as equipment in order to ensure the product quality right at the input stage. 21 3.3.2.2. For regulations and standards on consumers’ safety. The Government should organize exhibitions, introduction of safe products to consumers; pay more attention to encourage a safe consumption in order to raise the awareness of enterprises in producing safe products. The Government also needs to establish an independent evaluation organization which is capable of inspecting and certifying the satisfaction of safety standards of the product, guiding the garment and textile enterprises to implement relevant regulations in order to meet the requirements on consumers’ safety of the importing countries. The enterprises need to master regulations provided by importing countries on consumers’ safety standards and strictly comply with such regulations. They also need to propagate the importance of producing safe products to their workers, so that they will be more careful and responsible when producing safe products. 3.3.2.3. For regulations and standards on environment People in developed countries consider any environment as their common environment, so if one product contaminates the environment in Vietnam, it also contaminates their common environment and then it will not be accepted. Following are measures to overcome such barriers: - To build the garment and textile industrial clusters. The Government plays a very important role in developing such industrial clusters, attracting investment in production of raw and auxiliary materials, especially in stages of weaving, dyeing and finishing. The biggest issue raised by the weaving and dyeing processes is waste water treatment. Therefore, it is required for the Government to plan and construct cluster of weaving and dyeing factories to have the best waste water treatment system in order to attract more FDI, meeting the demand on environmental standards applied by importing countries. - The garment and textile enterprises should enhance their chemical management, apply cleaner production programs: during implementation of the environmental management system, it is required to review chemicals, dyes, auxiliary substances on use and their origins, Material Safety Data Sheets provided by their suppliers; implement programs of cleaner 22 production: appropriate, economical and effective use of the environment- friendly chemicals and dyes, technologies of water and enery saving, low waste water and emmissions. 3.3.2.4. For regulations and standards on social responsibility To orient and facilitate the enterprises to well fulfill their social responsibility, the Government as well as garment and textile enterprise should implement some measures as following: to strengthen the propaganda so that all people, especially those working in the enterprises, macro policy makers and managers can properly understand nature of “social responsibility” and codes of behavior. Viet Nam need to carry out basic studies and fields surveys at enterprises which have implemented or will implement the codes of behavior, in order to identify advantages as well as barriers, difficulties and challenges, accordingly recommending measures to be applied in the coming time. In these processes, the Garment and textile Association, Vietnam Chamber of Commerce and Industry, ministries and agencies play a very important role. 3.3.2.5. For regulations and standards on garment and textile labeling The Vietnamese Government and Garment and textile Association should carry out further negotiations with importing countries to reduce more-than-necessary regulations and ensure a better transparency of regulations on labeling provided by the importing markets. The enterprises should study and learn more about the reasonable regulations and standards on labeling provided by the importing markets relating to fiber components, origin, and user manual in order to have measures to adapt to and satisfy such standards and regulations. 3.3.2.6. For regulations on garment and textile origin For the Government, to quickly establish auxiliary industries to support the garment and textile industry and others as well. The Government should have a specific scientific plan stating areas to grow, produce and supply auxiliary materials to the garment and textile industry; build centers to produce and trade raw and auxiliary materials, have plan to call for investors from Hongkong, Taiwan, Japan to join the development of such centers, and investment in equipment for producing raw and auxiliary materials in Vietnam, in order to stabilize the market.. 23 The Vietnam’s garment and textile enterprises should actively use and invest in domestic production of raw materials to reduce their dependence on foreign countries as well as self-control quality of their products. The garment and textile enterprises should invest in producing raw and auxiliary materials to self-supply raw materials for their production. CONCLUSION In the current context of deep globalization and regionalization, together with the trade liberalization trend with a reduction and removal of traditional tariff barriers, an increasing development of technical barriers becomes an unavoidable trend. From a conflict between the increasing use of technical barriers of the developed countries which has prevented the Vietnam’s export of garment and textile and Vietnam’s weak capacity to overcome such technical barriers while making continual efforts to promote its export of garment and textile to such markets, I have decided to do my dissertation on “Technical barriers to the exporting garment and textile and solutions of Vietnam” in order to study, clarify the theoretical and practical bases for recommendation of measures to overcoming the technical barriers imposed by importing countries, promoting the export of garment and textile in Vietnam. Following are the main results of my dissertation: Firstly, my dissertation has systemized and clarified some theoretical issues concerning the technical barriers and overcoming the technical barriers to exporting garment and textile. Secondly, my dissertation has studies the experience in overcoming the technical barriers to exporting garment and textile of some countries such as China, India and Thailand at both national and enterprise levels, with a focus on supporting measures of the Government as well as efforts to overcome the technical barriers of the enterprises, drawn lessons which should and should not be applied to Vietnam. Thirdly, my dissertation has provided a deep analysis and assessment of real situation of export and use of technical barriers of major importing countries and their impacts on Vietnam’s export of garment and 24 textile as well as measures to overcome the technical barriers to garment and textile of the Vietnamese Government and enterprises. My Dissertation also shows that in order to overcome the technical barriers imposed by major importing markets, the Vietnam’s garment and textile have experience important adjustments and innovations, especially in production technology, building trademarks and changing monitoring and inspection methods. However, during satisfying the technical barriers, there are still many shortcomings due to both objective and subjective causes. Fourthly, my dissertation has studied and clarified the trend for technical barriers development and increasing use of the technical barriers to exporting garment and textile of major importing markets in the coming time. The technical barriers will be continually developed, increasingly used and become more complicated. New development trends of the technical barriers and their increasing use in the importing markets may have more significant impacts on Vietnam’s exporting garment and textile. Fifthly, my dissertation has provided viewpoints and orientations to overcome the technical barriers to garment and textile in the coming time on the spirit of promoting international integration, making continual efforts and have strategic orientations at both national and enterprise levels to overcome the technical barriers, promoting the export of garment and textile. Sixthly, my dissertation has proposed general measures as well as specific ones for the Government, Association and Enterprises in order to overcome the technical barriers imposed by importing countries, promoting the export of garment and textile. The above results are my theoretical and practical recommendations to improve the capacity to overcome the technical barriers to international trade, promoting Vietnam’s export of garment and textile. Despite my best efforts, my dissertation may still contain some mistakes. I am looking for the ideas from my instructors and scientists to complete my dissertation. LIST OF MY STUDIES 1. Pham Thi Lua (2011). Vietnam’s garment and textile industry – Some theoretical and practical issues, Political Theory Magazine, March 2011. 2. Pham Thi Lua (2011). Industrial Policy of Japan applied to ASEAN countries, especially Vietnam, Industry Magazine - April 2011. 3. Pham Thi Lua (2011). Measures to overcome the technical barriers to Vietnam’s exporting garment and textile, Commerce Magazine – August 2011. 4. Pham Thi Lua (2012). Recommendations on orientations to adjust the exporting policies for the Vietnam’s garment and textile industry in the new context, Theoretical Education Magazine - December 2012. 5. Pham Thi Lua (2012). Export of the garment and textile to Japan and recommendations for Vietnamese enterprises, Science and Technology Magazine, University of Economic and Technical Industries, December 2012. 6. Pham Thi Lua (2014). Technical barriers – big challenges for Vietnam’s garment and textile enterprises, Industry and Trade Magazine, April 2014. 7. Pham Thi Lua (2014). The Vietnam’s garment and textile enterprises to overcome the technical barriers of the exporting markets, Commercial Study Magazine, April 2014.