Home / Knowledge / News / Apparel/Garments / Myriad challenges engulf Vietnamese garment sector
Myriad challenges engulf Vietnamese garment sector
Mar '12
It is not going to be easy for Vietnam's textile and garment industry to achieve the export target of US$ 18.5 to US$ 19 billion set for the current year, Dang Phuong Dung, Vice Chairman and Secretary General of Vietnam Textile and Apparel Association (VITAS), said.

Ms Dung said Vietnam's key markets like the EU, US and Japan are still plagued by global financial crisis. She added that owing to debt crisis, EU customers are holding back their expenditure, which has resulted in a decline in apparel export orders.

Discussing the challenges faced by the domestic industry, she said manufacturing costs, power, water and fuel charges, salaries of workers and interests on bank-loans are all rising.

She said that dearth of skilled manpower is also a major challenge, which is restraining many firms from fulfilling their orders or contracts, as product quality gets affected due to inadequate workforce.

According to Ms. Dung, companies should develop a sense of social responsibility, ensure fair returns for workers, evolve healthy work atmosphere and generate sufficient promotion opportunities for workers.

Further, she also stated that higher dependence on imported inputs and outsourcing orders that generate low returns may not prove helpful in improving the sector's exports or its competitiveness.

The Vietnamese apparel industry lags behind in terms of efficient technology, production and productivity. Majority of the small- and medium-sized enterprises (SMEs) still lack marketing skills, and fall short of design efficiency for producing unique products. Moreover, trademarks have not been developed properly, Ms. Dung said.

While exporters lack sufficient capital required to fetch imported inputs, they also face problems in obtaining bank loans. This forces them to curtail their operations and accept only outsourcing orders, which is adversely affecting the competitiveness of the Vietnamese garment industry, the VITAS official concluded.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Fancycrave.com from Pexels

Apparel/Garments | On 22nd Jun 2018

EU's retaliatory duty on US apparel takes effect

As part of the three-pronged response outlined by the European...

NCC applauds House passage of farm legislation

Textiles | On 22nd Jun 2018

NCC applauds House passage of farm legislation

The National Cotton Council (NCC) of the US has welcomed the passage...

Courtesy: Roman Pohorecki from Pexels

Apparel/Garments | On 22nd Jun 2018

UK launches inquiry on sustainability of fashion industry

The Environmental Audit Committee of the UK Parliament has launched...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Ashok Desai
Bombay Textile Research Association

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

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

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

news category

Related Categories:

Advanced Search