In early September 2024, VCOSA launched the survey program “Cotton quality standard and dispute survey”. This survey aims to understand and evaluate the current quality of cotton in the market and to gather information to assess the alignment of the International Cotton Association’s (ICA) Value Differences Circular with the production and business practices of Vietnamese spinning enterprises. The ultimate goal is to propose reasonable adjustments to ensure the rights of Vietnamese spinning enterprises in the event of quality disputes.
VCOSA is pleased to announce that the survey has collected valuable and practical feedback from various enterprises. The preliminary results compiled by VCOSA since the program’s inception highlight the following key points:
• Many enterprises have encountered situations where the cotton received did not meet the agreed standards. This not only impacts the yarn production process and weaving but also diminishes the value of their goods and brands.
• Participating enterprises believe that the current regulations are insufficient to protect buyers’ rights, particularly in cases of quality disputes.
From these issues, numerous enterprises have proposed insights and suggestions to improve and resolve existing problems:
• Proposals to adjust and include additional criteria related to short fiber content and strength in the Value Differences Circular (VDC) to accurately reflect differences in cotton quality, thereby improving the compensation process for disputes.
• Requests for more specific regulations regarding compensation based on actual value to protect their rights and minimize losses when cotton quality does not meet requirements.
• Proposals for the establishment of a reputable scoring system for cotton suppliers to enhance product quality and protect buyers’ rights.
The preliminary survey results indicate that cotton quality and related dispute regulations are critical issues for the spinning industry, especially for buyers in the Vietnamese market. Enterprises anticipate reasonable adjustments from relevant authorities to improve the situation, protect their rights, and enhance product quality and fairness in laws and regulations. This feedback has helped VCOSA better understand the challenges facing the spinning industry, enabling it to recommend necessary changes to the ICA to protect and promote the rights of cotton buyers in general and Vietnamese enterprises in particular.
The survey is still ongoing; if your enterprise has not yet participated, please share your information quickly through the link:
https://forms.gle/8e3WmuqTZGPw3Nxo6
In the coming time, VCOSA will continue to update changes related to compensation and disputes in cotton issues, including quality and technical matters, via the association’s official communication channels.
To receive more detailed information and the latest updates, as well as to ensure the best protection of your rights in disputes and claims, VCOSA encourages enterprises to register for membership and proactively share their difficulties and concerns with the association.
VCOSA sincerely thanks you for your interest and cooperation!
VCOSA