Home / Knowledge / News / Apparel/Garments / Pall of gloom surrounds garment exporters
Pall of gloom surrounds garment exporters
06
Nov '08
With each passing month and day, the economic crisis is taking its toll. The situation is more miserable for countries like Vietnam and Bangladesh which had projected high clothing export growth rates in the current year on back of thumping growth in the previous year.

Reputed garment export companies are complaining of cut back in new orders by up to nearly 30 percent in comparison to the same period of last year. They add by saying that they are currently working on orders received a few months ago but are apprehensive of the pace of new orders in the next few months.

According to them their buyers are requesting for rate cuts on rates negotiated earlier by nearly 5-10 percent for deliveries scheduled for the next two months. The buyers are also asking for quarterly contracts instead of the yearly norm.

The manufacturers are also finding it difficult to give regular work to their employees on back of falling orders, while in the previous years they had to plead with them to work overtime to complete orders on time. A few companies have started retrenching or laying off workers to reduce their over heads.

Export targets of major garment exporting countries like Vietnam which has set an ambitious target of achieving US $9.5 billion in the current year and was well on the way to achieving the same before the current crisis began now looks unachievable.

Exports of textiles and apparels had reached $7.64 billion in the first ten months of 2008 and were on course to complete the projected figures as it needed to ship $930 million per month worth of products in the last two months of the calendar year. But under the present situation this figure looks far fetched.

Apparel buyers and importers are also reporting a slowdown in their home and global markets and say that they expect this situation to continue till the first half of 2009. But at the same time they expect their orders to be completed on time, therefore only those companies with high productivity and capability of delivering on time are expected to benefit in the next few months.

Garment units in Vietnam, though are worried due to the above as at year end and at the beginning of the new year they run short of workers by as much as 40 percent due to the Lunar New Year when workers return to their villages and come back after a very long hiatus. Due to this they are apprehensive about signing new contracts for deliveries in the months of January and February.

Experts suggest the exporters to follow the example of a few companies in Vietnam who have diversified their export destinations and looked for new markets and are not dependent on the markets of the US, if they want to survive this meltdown, whose end, no one is willing to predict.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 21st Jul 2017

No shortage of cotton & yarn in country: Minister

There is no shortage of cotton and yarn in the country, and the...

Pic courtesy: Sutlej Textiles & Industries Ltd

Textiles | On 21st Jul 2017

Sutlej Textiles’ Q1 FY18 EBITDA expands to Rs 76.28 cr

Sutlej Textiles and Industries Ltd (STIL), one of India’s largest...

Textiles | On 21st Jul 2017

CAI revises 2016-17 cotton crop to 337.25 lakh bales

Cotton Association of India (CAI) has upwardly revised cotton crop...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Marten Alkhagen
Swerea IVF AB

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


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



X