Home / Knowledge / News / Apparel/Garments / Vietnam garment workers may lose jobs as export orders dip
Vietnam garment workers may lose jobs as export orders dip
25
Jul '12
The Southeast Asian nation of Vietnam is currently witnessing a slump in demand for its apparels from its major markets, and if the trend continues, it may result in loss of jobs for several garment workers in the country. 
 
According to Vietnam Textile and Apparel Association (VITAS), garment makers in the country have been battling against several odds like dearth of export orders and other market difficulties that have arisen on account of the ongoing EU debt crisis.
 
VITAS said only big garment enterprises have been able to secure orders for the third quarter of current year, while demand slump has compelled a number of small and medium sized producers to cut production.
 
It is estimated that demand from the EU markets has fallen sharply by almost 20-30 percent over the past few months, compared to demand for Vietnamese apparels during the same period last year.
 
As noted by the General Statistics Office, the Vietnamese garment and textile industry grew at a year-on-year rate of 8.7 percent during first half of the current year, which is much lower than the growth rate of 30 percent year-on-year witnessed during the corresponding period of last year.
 
If the adversities continue, VITAS apprehends that it may force the textile and garment makers in Vietnam to cut their workforce by about 20 percent.
 
In addition to the fall in export orders, Vietnamese textile and garment producers, particularly the smaller ones, are also faced with other challenges like adhering to stringent quality and social responsibility norms, set by the EU markets.
 
Efforts made by Vietnamese enterprises to adhere to EU quality norms result in increased input costs to producers, which ultimately reduces their price competitiveness, experts say.
 
Vietnamese garment producers face tough competition from Cambodia, Myanmar, Bangladesh and China. While Cambodia and Bangladesh already enjoy duty-free access for their garment exports to the EU, Myanmar is also close to achieve the same status.
 
Further, deceleration in value of Euro against US dollar has also cut the profits of Vietnamese exporters, as they pay in US dollars for their raw material imports from Thailand, China and Taiwan, but receive payment in Euros for their exports to the EU countries.
 

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Pan Brothers

Apparel/Garments | On 30th May 2017

Pan Brothers to set up 2 new garment factories

PT Pan Brothers Tbk plans to increase its production capacity by...

Apparel/Garments | On 30th May 2017

Levy uniform rate of GST on yarn & fibre: SIGA

The South Indian Garment Association (SIGA) has urged Union finance...

Textiles | On 30th May 2017

ExxonMobil, SABIC sign deal for next phase of US project

Affiliates of Exxon Mobil Corporation and Saudi Basic Industries...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Marcel Alberts
Eurofibers

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search