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Domestic fabric & apparel sales fall drastically
May '11
The continuously rising prices of cotton and yarn globally have pushed up prices of fabrics by 40-50 percent in Vietnam.

The high fabric costs, in turn, have led the domestic consumers of ready-made garments to keep away from buying at the moment.

According to fabric wholesalers in Vietnam, the volume of fabric sales has dropped considerably in the local market in spite of the summer peak season.

A meter of cotton fabric which cost VND 30,000 before the Lunar New Year in February is now being sold for VND 63,000. Similarly, the price for a meter of khaki fabric which cost VND 50,000 has now risen to VND 90,000.

The prices of not only fabric, but also thread, buttons and zippers have risen compared to the previous summer season. This has led to a realization among the consumers and manufacturers alike that apparel prices have become too high.

In their bid to minimize stocks and avoid losses, garment manufacturers in the wholesale Tan Binh market have opted to reduce production. Some of them have even opted to halt production.

In the midst of high domestic prices, apparel manufacturers in Vietnam have resorted to import material in order to be able to compete with low-priced Chinese garments.

The rise in prices of all kinds of fabrics has led to increase in the price of garments in tandem. For instance, the total clothing sales in the 11 shops of a leading retailer too have dropped by 30 percent. The same retailer, who previously made about 300-400 pieces for one women's shirt design in three colours and six sizes, is now producing only half that number.

Fibre2fashion News Desk - India

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