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Domestic enterprises seek measures to cope with global downturn
29
Nov '08
Global economic crisis is putting a harsh effect on the export activities of industries in general and textile and garment industry in particular; therefore the industry currently is seeking measures to overcome such situation.

Major factors that are burdening the exporters include squeez in export orders; narrow consumption in large markets; increase in input cost and oil; high interest rate; difficulty in capital access plus request on higher salary rate.

To add to the woes, fierce competition from other textile and garment exporters from China and India is making it difficult for the country to meet its current export target of US $9.5 billion. It seems even maintaining the growth rate of 20-25 percent in 2009, will be hard.

To cope with these huge obstacles, the textile and garment industry has recently made specific proposals to the Government. They are, reduction of import tax imposed on synthetic fibre from 3 to 0 percent; nullify dues of previous year tax on cloth saved in processing limitation; quash VAT on equipments and machine imported to serve investment and export processing delegation; work out measures to limit unprompted strikes; allow textile and garment enterprises to use money from land-using transfer upon moving their production bases out of the city to reinvest or develop business capital etc.

At present, recession is serious in the US and EU region. As these are the biggest importers of Vietnamese textile and garment product for years, the current situation has been putting an adverse effect on country's export.

Witnessing this situation, the local associations and enterprises have joined hands to find out the reasonable solutions to improve their own competitiveness that is vital for better production and exports.

The export of Vietnam's textile and garment products to EU has recently decreased. At present, Vietnam enterprises must face fierce competition from other exporters. Especially since the beginning of 2008, there was no quota imposed on China's textile and garment product exported to EU.

Fibre2fashion News Desk - Vietnam

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