Apparel exports to face more adversities in 2011 – Expert
March 23, 2011 - Vietnam
Nguyen Duy Khien, Head of the American Department under the Ministry of Industry and Trade recently while addressing a seminar in the HCM City said that, the Vietnamese economy had been trapped in a complex situation from the very start of the current year.
Further, factors like trade barriers, soaring cost of production and competition extended by China are likely to pose more challenges before the Vietnamese exporters shipping goods to the US, during the year.
High prices of raw materials have adversely affected the competitiveness of the domestic exporters, particularly of those functional in the textile and garment sectors, the official added.
In addition to this, the businesses had also confronted adversities in obtaining bank credit, which had resulted in dearth of capital and impeded the production growth for exports.
Moreover, as other countries, particularly China is extending strong competition to Vietnamese exporters, and this too is likely to have an adverse effect on the country’s export during the year, he said.
China holds a major share of the US market in respect of items like textiles and garments and footwear, which are considered to be Vietnam’s strong points.
China now has outshined Canada, and has turned out to be the leading exporter to the US. It last year, exported goods worth US$364.04 billion to the US, which constituted around 19.17 percent of the US’s overall import turnover.
A majority of the exporters from Vietnam were small business houses for whom it was not at all easy to converge with the technical standards fixed by the US.
Khien advised that the Vietnamese exporters should undertake market research to study demand and also legal and technical hindrances which would come their way while entering the US market.
Also he added that, the businesses should even focus on developing and updating their websites regularly, as these websites play a significant part in foreign trade, particularly in the one with the US. The US businesses are habituated to find out more information by surfing the internet, prior to getting in touch with the suppliers.
Further, factors like trade barriers, soaring cost of production and competition extended by China are likely to pose more challenges before the Vietnamese exporters shipping goods to the US, during the year.
High prices of raw materials have adversely affected the competitiveness of the domestic exporters, particularly of those functional in the textile and garment sectors, the official added.
In addition to this, the businesses had also confronted adversities in obtaining bank credit, which had resulted in dearth of capital and impeded the production growth for exports.
Moreover, as other countries, particularly China is extending strong competition to Vietnamese exporters, and this too is likely to have an adverse effect on the country’s export during the year, he said.
China holds a major share of the US market in respect of items like textiles and garments and footwear, which are considered to be Vietnam’s strong points.
China now has outshined Canada, and has turned out to be the leading exporter to the US. It last year, exported goods worth US$364.04 billion to the US, which constituted around 19.17 percent of the US’s overall import turnover.
A majority of the exporters from Vietnam were small business houses for whom it was not at all easy to converge with the technical standards fixed by the US.
Khien advised that the Vietnamese exporters should undertake market research to study demand and also legal and technical hindrances which would come their way while entering the US market.
Also he added that, the businesses should even focus on developing and updating their websites regularly, as these websites play a significant part in foreign trade, particularly in the one with the US. The US businesses are habituated to find out more information by surfing the internet, prior to getting in touch with the suppliers.