Government may aid textile and clothing sector

Vietnam may lower business taxes and grant subsidies to assist the domestic textile and clothing sector weather the global economic downturn, Government Office Deputy Minister Pham Viet Muon announced Tuesday. The Ministry of Finance is considering reducing the corporate income tax for textile and clothing businesses to 17.5 percent from 25 percent. The value added tax (VAT) on imported cotton may also be halved to 5 percent. The government will allocate 40 cents of every dollar of export turnover to help protect the sector’s workers from losing their jobs. The State Bank of Vietnam was asked to loan US$15 million to the National Textile and Garment Group (VINATEX) with a preferential interest rate to import cotton to keep in storage for one year. Vietnam’s textile and clothing sector, the nation’s second-biggest exporter earner after oil, has called for government assistance to help it cope with a decline in orders from foreign customers. sources from vietnewsonline.vn