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Apparel sector import dependent for raw material requirements
Aug '09
The clothing export sector in Vietnam is one of the highest revenue generators for the country, but at the same time the sector records a high level of import content, mainly raw materials to support the export sector.

The apparel export industry which was able to clock a turnover of US $9.1 billion in 2008 is not able to source quality raw materials like fabrics and accessories from domestic sources, due to which they have to import the same.

Secondly, the Vietnamese fabric sector is not able to process and supply orders in small quantities like their overseas counterparts, which is also the main bone of contention of the apparel manufacturing sector.

Garment exporters also point out that other than quality and supply issues, prices of domestically produced textile raw materials are higher by at least 5-10 percent than those imported from overseas markets.

The apparel export sector is highly import dependent for its raw material requirements and according to estimates, 90 percent of the requirement is met through imports and only 10 percent from domestic textile sources.

Fibre2fashion News Desk - India

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