Vietnam : Govt Committee To Probe Fraud In Textile, Garment Exports

To crack down on companies manipulating export quotas under the textile
agreement with the United States, Vietnam government has formed a
committee.

This follows discovery of various frauds by garment companies trying to
dupe their way into obtaining quotas to export to the US or make a
quick buck by selling theirs. The Ministry of Trade (MoT) even reported
requests for quotas by non-existent companies. The newly set up group has
been entrusted with tackling acts of this nature.

It comprises officials from the Ministries of Trade, Planning and
Investment, and Industry, the General Department of Customs, the Viet Nam
Chamber of Commerce and Industry (VCCI) and the Viet Nam Textile and
Garment Association.

Besides probing frauds, the team will also examine reports by textile
and garment firms on their production and export capacities, which are
the basis for allocating quotas, essential for exporting textiles to the
US following the agreement.

It will then check these against export certificates, and with customs
offices and the VCCI for irregularities. Based on the committee’s
findings, supervisors will devise measures to fight fraudulent trade
practices and apply appropriate penalties to violators.

Penalties could mean a cut in quota next year or even filing court
cases, said Le Van Thang, an official of MoT.

He pointed out firms could exaggerate their production and export
capacities to get the quotas.

The MoT has also decided to establish five supervisory groups in
various cities with powers to grant the export quotas. HCM City has got two
groups, and Hai Phong, Ha Noi and Da Nang one each.

These groups will be responsible for checking textile and garment
exports at local ports and warehouses, and gathering reports from
enterprises.

The national and municipal supervisory committees began work last
Tuesday and hope to finish by the end of this month.

According to the Deputy Minister of Trade, Mai Van Dau, textile exports
to the US have reached US$400 million this month, as a result of
businesses trying to beat the quota deadline, and $1.2 billion in the first
half of the year.

The ministry has already allocated 80 per cent of the quotas for the
year and will hand out the remaining later this month.