Home / Knowledge / News / Textiles / Govt adds fuel to already burning inflation
Govt adds fuel to already burning inflation
27
Feb '08
The Government of Vietnam, on February 25, announced a rise in the prices of petrol and this has triggered large scale disappointment in the country which is already burdened by rising prices of goods in all sectors.

Besides, Government has also given petrol distributors the authority to have full control over the prices on a condition that it does not go beyond a certain limit.

Experts believe that the decision is entirely baseless since the economy is already threatened by rising inflation. Besides, there is a pressure from the country's consumers who complain of extremely high prices that makes essential goods unaffordable.

A likely consequence of the decision is an increase in the Consumer Price Index by 0.4-0.5 percent. However, industrial sources confirm that the outcome will be more extreme in its intensity than expected.

Apart from an obvious increase in transport fare which has already soared by 7-12 percent in Ho Chin Minh from January this year, there is bound to be a rise in the production costs of nearly all the commodities.

Impact of this will be seen even on the textile sector. Rising oil prices will accompany a hike in the prices of polyester which will in turn create a paucity of the fabric forcing manufacturers to indulge in cotton production.

Earlier, in 2006, oil prices decreased prompting the Ministry of Finance (MoF) to think of lowering the retail petrol price in the domestic market while at the same time maintaining the import tax rate at 15 percent. Presently, the situation has completely changed and if Government fails to reconsider its decision, Vietnam may have to suffer a set back in the domestic as well as international arena.

Must ReadView All

Textiles | On 24th Jan 2017

Textile industry demands relaxation of laws from Budget

The upcoming Union Budget 2017-18 should focus on relaxing certain...

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...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Silke Brand-Kirsch
Schlegel und Partner

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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