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 19th Sep 2017

Karl Mayer expands service operations in Asia

Karl Mayer, a world leader in the production of warp knitting and...

Textiles | On 19th Sep 2017

Welspun bags Made in Green label by Oeko-Tex

Welspun, a leading home textiles manufacturer, has been awarded Made...

Courtesy: SGS

Textiles | On 19th Sep 2017

SGS expands testing facilities in Naucalpan, Mexico

SGS has expanded testing facilities in Naucalpan, Mexico, creating a...

Interviews View All

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eamonn Tighe
Nature Works LLC

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

September 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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

Yes No

Active Poll

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

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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

Yes No

Active Poll

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

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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

Active Poll

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

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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