Emerging markets do not portray optimistic picture – Experts

22 Sep '08

2 min read

Since the beginning of September, with continuous RMB appreciation against the Euro, many entrepreneurs were pinning their hopes on emerging markets like ASEAN, Russia and Middle East for earning huge profits.

However, the recently released Customs data show that From January to July of this year, the market proportion of emerging markets accounted for nearly 43.26 percent of China's textile export market. It marks a significant rise from 37.73 percent when compared to 2005. Emerging markets have become one of the main forces driving China's textile exports.

However, statistics show that nations total textile and garment exports to ASEAN regions reached around US $3,268 billion in the first seven months of 2008, reflecting a slight rise of 7.74 percent when compared to same time last year. On the other hand exports to Russia registered a negative growth of 13.16 percent.

Textile and garment exports from China to Russia indicated a negative growth of almost 13.16 percent in the first seven months of 2008. This clearly shows that the situation of emerging markets is not as optimistic as it was anticipated by the industry.

China's exports to other overseas regions like Africa and Latin America maintained a single-digit level, much lower than that in the same period last year.

According to the available statistics, in the past, country's textile exports have generally achieved a double-digit growth in emerging market economies. However, experts suggest that exporters should be more cautious while shipping their consignments to overseas markets like Vietnam, which are presently going through economic crisis.

Fibre2fashion News Desk - China

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