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The Ministry of Finance (MoF) has declined to adopt a proposal from the Vietnam Textile and Apparel Association (VITAS) in which it called for the purchase of domestic fabric for export production to be subject to a value-added tax (VAT) rate of 0 per cent. The industry is being weighed down by difficulties due to labor shortages and rising costs, making the 2021 target of exporting billion worth of goods problematic.