Home / Knowledge / News / Apparel/Garments / Export of garments up by 17.1 percent
Export of garments up by 17.1 percent
04
Jun '10
According to Pham Xuan Hong, Deputy Chairman, Viet Nam Textile and Apparel Association (Vitas), the country's garment exports have increased by 17.1 percent during the first five months of the year, as compared to the corresponding period last year, registering US $3.8 billion.

In order to meet the industry's yearly export target of $10.5 billion, the industry will have to generate a monthly export turnover of atleast $1 billion for the remaining year. Currently, the industry's biggest challenge was the dearth of workforce that has lead to a 10 percent downfall in its manufacturing capabilities.

As of now, the apparel workforce is earning about VND 4 million ($200) per month. Although there was a 10-20 percent increase in the prices of overseas sales of goods in 2009, firms are yet pressed to surge worker's salary by 10 percent, so as to hold on to them. Firms are currently facing difficult times to continue to maintain workforce at such low salaries.

With the sudden steep increase in the prices of raw materials, the export prices, which rose by around 5-7 percent during the late 2009, are also unable to cover costs. Almost 90 percent of the raw material utilised by Vietnam's garment industry are bought from foreign countries.

After India decided to stop cotton exports, the cotton prices have increased from $1.3-1.4 per kilogram, as recorded early this year, to $1.9 per kilogram. The price has grown by 34.3 percent as against the same period in 2009.

The surge in prices of raw materials has also lead to a steep increase in material import revenues. As per the General Statistics Office, during the first five months of the current fiscal, the industry used up $269 million on cotton imports, an increase by 154.2 percent over the corresponding period, last year.

In addition, the figures for fabric and fibre were $427 million and $2.02 billion, respectively, a hike of 54.6 percent and 23.9 percent, respectively, over the corresponding period, last year.

Import cost for materials and accessories, utilised in the garment and footwear firms have also touched $1.01 billion, an increase by 31.7 percent, year-on-year. Despite hike of input materials costs, Vietnamese exporters have failed to re-negotiate export prices as they have inked deals with buyers.

Fibre2Fashion News Desk - India

Must ReadView All

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Marten Alkhagen
Swerea IVF AB

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Yash P. Kotak
Bombay Hemp Company

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

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search