Pointing to challenges facing the textile industry at the present time, Mr. Truong Van Cam, Vice President and General Secretary of the Vietnam Textile and Apparel Association (VITAS) said that some countries are still applying strict measures. Strict anti-epidemic should significantly affect the supply chain of raw materials, auxiliary materials and product consumption.

Textile and garment enterprises face many difficulties
Production activities at Dong Xuan Knitting One Member Co., Ltd. Photo: GIANG NAM

In addition, the high inflation rate in major textile consuming markets such as the US and Europe… affects orders and unit prices of textile and garment enterprises from now until the end of 2022, causing many Businesses fall into a shortage of orders. The problem of labor shortage is also making it difficult for textile and garment enterprises. Due to the impact of the Covid-19 epidemic, many workers returned to their hometowns and did not return to industrial parks and many big cities; The recruitment of new workers also faces difficulties when training costs increase and the productivity of newly recruited workers is low. Especially the situation that many workers withdraw their social insurance once, work for a short time and then take leave to enjoy unemployment insurance, which has caused labor instability.

Another challenge mentioned by Mr. Truong Van Cam is that many textile and garment enterprises have faced many difficulties in capital for production and business, while support packages are slow to be implemented; Tax policy, especially the State’s tax refund for businesses is very slow, making it even more difficult for businesses. “Enterprises must pay VAT immediately (if late payment must be fined or charged interest), but when the export is finished, the tax refund is too long, there are enterprises with 140 billion dong of capital this year such as Viet Tien Garment Joint Stock Corporation, or Phuong Dong Garment Joint Stock Company with a capital of 40 billion dong. Interest on bank loans during the period of delay in tax refund, enterprises also have to bear”, Mr. Truong Van Cam cited.

Facing the challenges posed, VITAS proposed to the Prime Minister, concerned ministries and branches to take measures to support and direct to reduce costs for the business community. It is proposed that the Government soon approve the “Strategy for development of the textile and footwear industry to 2030, with a vision to 2035” to create conditions for the formation of large industrial parks with centralized wastewater treatment and advanced technology. advanced, green technology to attract investment in textile dyeing, solve bottlenecks in fabric supply for garment export, meet origin requirements for tax incentives from free trade agreements. VITAS also proposes to remove the requirement to pay import tax on the spot for goods used for production and export, because this regulation causes many shortcomings when it discourages production for export, causing inequality between domestic and foreign goods. exports and manufactured goods for export; request the Government to soon implement the 2% interest rate support package under Decree No. 31/2022/ND-CP dated May 20, 2022 on interest rate support from the state budget for loans of enterprises, cooperation communes and business households to help businesses avoid difficulties. To ensure the stability of human resources for production, VITAS proposed that the Government submit to the National Assembly to amend the Law on Social Insurance. Currently, the contribution rate is high, especially the review of retirement time, pension eligibility conditions suitable for production and business areas, avoiding the situation of employees applying for mass leave to withdraw social insurance. once, causing large labor fluctuations for enterprises. VITAS proposed that the Government submit to the National Assembly amendments to the Law on Social Insurance. Currently, the contribution rate is high, especially the review of retirement time, pension eligibility conditions suitable for production and business areas, avoiding the situation of employees applying for mass leave to withdraw social insurance. once, causing large labor fluctuations for enterprises. VITAS proposed that the Government submit to the National Assembly to amend the Law on Social Insurance. Currently, the contribution rate is high, especially the review of retirement time, pension eligibility conditions suitable for production and business areas, avoiding the situation of employees applying for mass leave to withdraw social insurance. once, causing large labor fluctuations for enterprises.

Source: qdnd.vn