Home / Knowledge / News / Apparel/Garments / Lifting of trade barriers by Japan succor for garment exports
Lifting of trade barriers by Japan succor for garment exports
30
Dec '08
Vietnam, was riding on a high wave of growth in its textile and garment industry in the last few years and clocking up to nearly 20 percent growth rates annually. Looking at the exponential pace of growth, the government too set stiff targets, which till a few months back seemed achievable.

But the clock has tuned back for the once set to emerge as the second biggest exporters of garments and textiles to the US. The economic meltdown and the resultant global recessionary trends have put brakes on the Vietnamese textile and garment exports juggernaut.

According to one of the major industry association body of the country, the Garment, Textile, Embroidery and Knitting Association (AGTEK) in HCM city, export growth is projected to slowdown in 2009 and added by saying that shipments would be affected the most to countries like US, Japan, France and Spain.

But at the same time they optimistically expected the markets of Northern Europe and Switzerland to remain stable. Though December is considered a peak buying season across the globe, buyers had cut back on orders and even were not lifting the manufactured products according to the association.

Orders, normally to be completed in the first half of 2009, have still not been received from the buyers by the domestic manufacturers and whatever orders are trickling in, are just a small percentage of what they would have received in normal times. The second biggest headache is the delayed payments from the importers.

This is proving to be a bottleneck for the sector as they are not able to cough more resources due to the ongoing credit squeeze in the markets. The matter has come to such a head that it has now become a question of surviving through the crisis for which no one is willing to predict the end.

To survive through the crisis, the association bodies have suggested several measures to the government like lowering income tax slabs and extending tax payment deadlines along with lowering the labour union fees from two percent to one percent. The bodies have requested to immediately announce a stimulus package.

The only saving grace or succor is the lifting of tariff barriers on exports to Japan from Vietnam from December 1, 2008. Exports from Vietnam will attract zero percent duty subject to the raw material origins being from either Vietnam or the countries of the ASEAN.

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

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