Le Quoc An, chairman of the Vietnam Textile and Apparel Association (Vitas), said the Consumer Product Safety Improvement Act (CPSIA), which comes into effect in February requires all garments and textiles exported to the US to meet new standards, with higher demands for quality and safety.

With these new requirements, it will be much more difficult for domestic companies to export products to the US.

Diep Thanh Kiet, deputy chairman of the Vietnam Leather and Footwear Association, said that the footwear sector would also be affected.

Exporters plan to spend more on testing materials, but will find it difficult to incorporate these costs into new export contracts.

Vietnam does not have a laboratory able to conduct CPSIA tests, which would force exporters to use services at international testing organisations, which are more costly, An said.

Another regulation, the Illegal, Unreported and Unregulated (IUU) fishing rule set by the European Commission, will take effect in January and effectively erect a trade barrier to exporters.

Under the regulation, exporters must show at least 12 certificates related to fishing boats, catching areas, fishing certificates and many others, for entry to the EU, according to the Vietnam Association of Seafood Exporters and Processors.

Because exporters buy materials through a serried of agents, this could pose serious problems, said Nguyen Xuan Nam, director of Hai Vuong Seafood Company in central Khanh Hoa province. It will also increase costs and reduce the competitiveness of the products.

Nguyen Van Hoa, general director of the Sai Gon Fisheries Processing Company, said that Vietnam’s many small-scale fisheries businesses faced big challenges meeting these requirements.

Nguyen Thi Thu Sac, director of Hai Nam Seafood Co, said that the authorities should request the EU to delay applying the IUU regulations for fishing boats under 90 tonnes.

The relevant agencies should also step up training on the IUU regulations for fishermen and companies, she added.

The EU is the nation’s largest seafood importer with 26 out of its 27 members importing products.
In 2008, Vietnamese seafood shipped to the EU accounted for more than 40 percent of its total seafood exports and 25.4 percent of its total export turnover.