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Vietnamese apparel sector to grab Chinese orders
Feb '11
China's exports of textile and garment reached US $21.618 billion in January 2011, registering an increase of 38.58 percent year on year, of which textile exports registered $8.243 billion, reflecting an increase of 47.48 percent year on year, exports of clothing and accessories achieved $13.376 billion, an increase of 33.61 percent, according to the latest export data released from General Administration of Customs.

Exports showed a higher growth rate in January, making a good start for 2011. Exports of textile and garment increased 38.58 percent, 14.90 percentage points higher in comparison to 23.68 percent of the entire year of 2010.

In addition to the reasons, such as demand for reinforcing inventories in Europe and America, smaller export base last year and price increase on cost push, there has also been an incidental factor, which is many companies made shipments in large volumes before the Spring Festival holidays.

Although January data showed a good start, the pressure faced by the textile industry has not reduced yet; the long-standing crisis shows the trend of spreading. There is difficulty in recruitment and labor shortage is increasing after the holidays in the Yangtze River Delta and Pearl River Delta regions.

Price increase of cotton and polyester has imposed cost pressures on the textile industry. Appreciation of the Renminbi and VND devaluation led to the fall in the price advantage of Chinese textile exports.

A recent research report, based on the interviews of 385 international buyers and sellers indicates that, Chinese textile exporters have felt that their orders have shifted to other countries.

31 percent of the interviewed buyers said that they would increase purchases from Vietnam; one of the reasons for this shift is that the price of Vietnamese products is 30 percent cheaper than that in China.

Fibre2fashion News Desk - China

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