Vietnam garment exporters peg hope on US QE3 package

01 Oct '12

1 min read

Vietnamese garment exporters are hoping to benefit from the third round of quantitative easing (QE3), announced by the US Federal Reserve last month.

As per the QE3, the Federal Reserve would pump US$ 40 billion into the market each month in order to lessen unemployment, revive production and stimulate demands.

The monetary policy package also allows the US companies to access capital at lowest possible interest rates to restart their production activity.

Experts believe that the QE3 package would result in an increase in demand in the US market, providing an opportunity for Vietnam apparel manufacturers to boost their exports.

But some analysts sound a cautious note and say that several other countries besides Vietnam – such as Bangladesh, China, Pakistan, Malaysia and Indonesia – would also increase their efforts to sell more in the US market to meet the growing demand resulting from the stimulus given by the Obama Administration.

In other words, Vietnam would have to fiercely compete with other nations, especially Asian countries, to grab a bigger share of apparel export orders from the US.

Fibre2fashion News Desk - India

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