Home / Knowledge / News / Apparel/Garments / Garment exports up, but profits dwindle
Garment exports up, but profits dwindle
18
Apr '11
In spite of remarkable rise in export turnover during the initial three months of the current year, the garment firms failed to register good profits, while some of them even suffered losses. The problem is likely to intensify in the second quarter.

As stated by the Vietnam Textile and Apparel Association (VITAS), garment export turnover registered a rise of 28 percent during first quarter of the current year to grow to $2.075 billion, as over corresponding period last year. However, this rise in turnover did not result in rise in profits.

Deputy Chairman of VITAS, Pham Xuan Hong, here said that, the garment firms are facing an impasse situation.

He revealed that, though the garment firms have sufficient number of orders and the export turnover is also rising steadily, still profits of these firms are likely to decrease and some of the firms are even anticipating negative profits, owing to soaring prices of raw material.

Like for example, Kateford fabric which was available at a price of 32,000 dong per metre at close of 2010 is now being traded at 75,000 dong that is a rise of 134 percent. Meanwhile, the cotton fabric prices have also gone up by 150 percent from 16,000 dong to 40,000 dong.

Hong termed this as an “unexpected tsunami”.

Hong clarified that, whereas clients consent to a maximum 15 percent rise in the prices, the raw material prices, coupled with water, electricity and transport costs and bank interest loan rates, have gone up by 22 percent. In addition to this, the enterprises have even hiked the average pay of workers by almost 14 percent from 3.5 million dong per month to 4 million dong per month. Thus, in view of all these factors, profits are likely to further decline in coming times.

Fibre2fashion News Desk - India

Must ReadView All

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Courtesy: IRRC Institute

Apparel/Garments | On 27th May 2017

Up to 7.5 mn retail jobs in US at risk due to automation

About 6-7.5 million retail jobs in the US are likely to be automated...

Textiles | On 27th May 2017

Indian textiles ministry promotes wool sector

The ministry of textiles has taken multiple steps to promote the wool ...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Johan Berlin
InvestKonsult Sweden AB

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

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...

Pranav Mishra
Huemn

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

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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