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

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Stefano Gallucci (left), CEO, Santex Rimar Group, and Tamer Hasbay, President, Has Group; Courtesy: Santex Rimar

Textiles | On 24th Jan 2017

Santex Rimar to market all Has products globally

Italy based Santex Rimar Group has signed an agreement with Turkey...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Johan Berlin
InvestKonsult Sweden AB

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Karan Arora
Karan Arora

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

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