Vietnam’s pollution regulations could deter textile firms
The former chair of the Vietnam Textile and Apparel Association has said that stringent waste water regulations are deterring companies investing in the sector, and will limit the industry’s growth if the ‘yarn forward’ rule is applied to the Trans Pacific Partnership.
Countries involved in the trade deal are debating whether Vietnam-made garments can be exempt from tariffs if they are ‘cut and sewn’ in the country or whether the yarn and textile needs to be produced there, too.
Le Quoc An told local reporters that the country would need 10 billion metres of fabric every year over the next 10 years to keep up with demand but that it can only produce 5 billion.
“Local authorities refuse textile projects because of the fear of environmental pollution,” he said.
