Home / Knowledge / News / Apparel/Garments / EU, US financial crisis to affect Vietnamese garment exports
EU, US financial crisis to affect Vietnamese garment exports
17
Oct '11
The ongoing financial crisis in the European Union and the United States will affect the garment and textile industry of Vietnam, which is likely to witness a fall in its export orders for the next year.

At present, Vietnam each month makes over one billion USD in garment and textile exports, as per the data of the Ministry of Industry and Trade (MoIT).

Vietnam's garment and textile exports grew robustly during the first three quarters of the current year to touch the four-year high of US$ 10.5 billion. Hence, the industry is likely to achieve its current year's export turnover target of US$ 13 to 13.5 billion.

However, the decrease in the purchasing power of buyers in the US and the EU has adversely affected the Vietnamese garment and textile industry. It is facing capital shortage owing to the import of raw material worth US$ 9.2 billion.

The hike in minimum wages of the workers that became effective from start of the current month has also added to the difficulties of the textile and garment exporters, as wages now constitute 65 percent of their total production costs.

MoIT said the garment and textile manufacturers should play their part in improving cotton cultivation and enhance their production capacity. The Ministry intends to enhance the industry's overall cotton production to 500,000 tons per year, while generating 2.75 million new job opportunities.

The Government plans to make the garment industry a leading export sector, the Ministry added. While the sector has a yearly growth rate of 12 to 14 percent, its exports have been growing at a rate of 15 percent.

As the industry looks forward to increase the ratio of genuine design production to 20 percent through 2020, it would mainly focus on cotton, fibre, garments and knitwear.

Today, Vietnam is home to over 3,700 garment and textile enterprises, with majority of them clustered in big cities like HCM City and Ha Noi.

Fibre2fashion News Desk - India


Must ReadView All

May 31 deadline for registration of chemicals under REACH

Textiles | On 23rd May 2018

May 31 deadline for registration of chemicals under REACH

May 31 is the final deadline for companies to register all chemicals...

US cotton production projected to decline in 2018: USDA

Textiles | On 23rd May 2018

US cotton production projected to decline in 2018: USDA

US cotton production is forecast at 19.5 million bales, nearly 7 per...

Pakistan's textile exports up 8.13% in July-April FY18

Textiles | On 23rd May 2018

Pakistan's textile exports up 8.13% in July-April FY18

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search