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Vietnamese apparel exports face tough time in EU
Jul '10
Owing to pressure from various trade protection regulations and the on going debt crisis in several EU nations, many Vietnamese goods, including apparels, are finding it hard to access the EU market.

During the first six months of this year, turnover of Vietnam's clothing exported to the EU nations, which is one of Vietnam's biggest markets for exports of apparels, surged by merely 1 percent, registering US $680 million. But, the export turnover for the months of April and May declined by nearly 3 percent, as compared to the same period, last year, informed, Vietnam Garments and Textiles Association (VITAS).

However, Vietnamese exports of apparels to its other two key export markets, US and Japan witnessed an upward trend. While a 15 percent growth and $2.7 billion export turnover was registered in US, Japan witnessed 10 percent growth, earning $515 million.

Recently, country's apparel exports to US have been enjoying growth rates in the range of 17-30 percent, whereas those to EU nations have surged by merely 11-12 percent.

Similar signs of improved track were also experienced in the Republic of Korea and few ASEAN markets, with an increase of 40 percent and 20 percent, respectively.

As per Tran Ngoc Quan, Head of the EU desk under the Ministry of Industry and Trade's EU Marketing Department, in addition to the apparel manufacturers, even the other Vietnamese businesses exporting products to the EU are encountering problems.

Trade experts opine that, the country might find it difficult to surge their apparel exports to the EU, during the rest of the period, as several provincial economies such as that of Greece and Portugal, are still recovering from the steep fall in consumer confidence, post the debt crisis.

More over, EU markets have stringent technical rules to safeguard the EU consumers and businesses. Hence, products exported to this region generally come across more blockades than other bigger markets.

Therefore, in order to overcome these problems, Vietnamese apparels businesses have been urged to develop high-end goods, which can meet the requirements of the EU market, thereby, increasing the use of latest technologies in manufacturing to surge their productivity and competitiveness. They have also been urged to join hand with bigger retailers and international importers, inform experts.

Fibre2Fashion News Desk - India

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