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Vietnam garment makers lack ample export orders
Jun '12
Several apparel producers in Vietnam are lacking sufficient export orders for the next quarter. 
Dang Phuong Dung, Vice Chairwoman and General Secretary of the Vietnam Textile and Apparel Association (VITAS) said that though big garment companies have been able to secure export orders, smaller businesses are still starving for orders.
Saigon Garment Manufacturing Trade JSC (Garmex Saigon) Vice Chairman, Nguyen An, said his company has secured sufficient export orders to suffice till October, with about 40 percent of the deliveries headed towards the US and another 40 percent to the EU. 
Mr. Nguyen noted that as EU customers have reduced their purchasing, this has led to a sharp fall in demand from EU. To offset this major loss in demand from the EU, Garmex Saigon has shifted its focus to the US market since last year, he added.
Thang Loi International Garment JSC Chairman Ngo Duc Hoa noted that his company has secured enough export orders to go on till October. However, he said that smaller firms are struggling to bag sufficient export orders.
Majority of the key apparel importers from Vietnam, including the EU, US and Japan have been hit by economic uncertainties. Moreover, owing to weak domestic demand, retailers in these countries have accumulated huge stocks of clothing item inventories, which has resulted in a reduced demand for Vietnamese products.
With continuing global economic slump like situation, it is expected that the Vietnamese garment firms would face more troubles due to lesser orders flowing in from overseas buyers.

Fibre2fashion News Desk - India

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