Home / Knowledge / News / Apparel/Garments / Slowdown leads to closure of apparel manufacturing units
Slowdown leads to closure of apparel manufacturing units
07
Feb '09
The textile and garment sector across the globe is passing through one of its worst phases in the last few years. The slowdown is creating havoc, leading to closures and mass un-employment for hundreds of thousands of workers.

The burgeoning garment industry of Vietnam, which till last year was clocking awesome growth rates, is no exception. Since the unfolding of the crisis in the last five months, many garment units are facing the possibility of closures.

Even the local Tet festival did not encourage sales, though off course, the domestic apparel manufacturers are yet to find a firm footing in the local markets, which is swamped by products of Chinese origin.

Domestic apparel sales fell by 6 percent in January 2009, when compared to the same period of 2008, despite the Tet festival. The Chinese have been able to corner the domestic market shares on the strength of their prices as well as designs.

The domestic manufactures have been found lacking on both fronts, but now some units are slowly coming around to the fact and are slowly establishing their networks in a bid to counter falling global clothing sales.

Many foreign invested apparel manufacturing companies have either partially or fully shut down their operations across many provinces of Vietnam, which has become a matter of concern for local authorities as it is creating un-employment in thousands.

To add to their difficulty, per unit value realizations are also going downhill and most of the units are surviving on razor thin margins in a bid to survive through the storm. The other few units who are not able to weather the gale are simply folding up.

Association bodies have suggested to the government to create a special fund for those workers whose units are on the verge of closing or have closed down, by drawing 1 percent of the export revenue of the garment industry, to help them in this period of crisis.

Experts are warning of worse days ahead in the months to come and have advised garment companies to become more competitive and also look for more diversified markets, to survive through this worst depressing period in the history of the sector.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: ABARES

Textiles | On 13th Dec 2017

Australian cotton production to grow 4% in 2017-18: ABARES

Cotton production in Australia is forecast to rise by 4 per cent to...

Global economy now growing by about 3%: UN

Textiles | On 13th Dec 2017

Global economy now growing by about 3%: UN

There is an upturn in the global economy, and it is now growing by...

Winners of Outstanding Award for Exceptional Performance with Anusha Alles (extreme right) and Sakura Manthreerathne, P.A.C.E. specialist at Brandix; Courtesy: Brandix

Apparel/Garments | On 13th Dec 2017

Brandix’s female workers benefit from GAP’s P.A.C.E

A group of 181 Brandix female associates have recently completed...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Urmil Arya

Sushila International, a well established textile organisation established ...

Steve Cole
Xerium Technologies

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

Marten Alkhagen
Swerea IVF AB

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

December 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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