Vietnam garment sector must explore new markets - Experts

14 Aug '12

2 min read

Exploring new markets is the best way to boost the Vietnamese garment industry, said legislators and industry experts while speaking at a seminar held to ponder on the ways to increase the sector’s sales.

The seminar focusing on solutions to access resources and taking the local garment business to the international level was jointly organized by the Vietnam Textile and Apparel Association (VITAS) and Vietinbank, in association with Dun&Bradstreert (D&B) in Ha Noi.

Rising at a steady annual growth rate of seven to eight percent, Vietnam’s textile and garment exports reached US$ 9.3 billion over the past seven months, which is considered to be quite moderate as compared to the 22 percent growth achieved by the economy during the same period.

VITAS Deputy Chairwoman and General Secretary, Dang Phuong Dung, said the US, EU, South Korea and Japan were the key export destinations for Vietnamese apparels during the period.

She said the country’s exports to South Korea have risen after the inking of a bilateral Free Trade Agreement (FTA) between South Korea and some of the ASEAN countries, including Vietnam.

During 2011, inflation was low and export orders were good, but this year, as the US is grappling against public debt crisis and unemployment problems, consumer demand has reduced, which has impacted Vietnam’s garment exports. In addition, the eurozone crisis has also badly hit Vietnamese garment exports.

In such a situation, exploring new markets would be the best way to boost demand of Vietnamese garments, said Ms. Dung. She said there is a need to enhance trade promotions to enable local apparel producers to better explore and penetrate in new markets.

Speaking at the seminar, Vietinbank’s Nguyen Thi Khanh Phuong said aiming to reduce reliance of garment exporters on foreign currencies, Vietinbank would help them balance their forex demand between garment and textile sectors, while ensuring payment ability and reducing the exchange rate risks.

Fibre2fashion News Desk - India

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