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Over exploitation of resources lead to high cost imports
Mar '09
The Vietnamese handicraft sector, which had exported goods worth over a billion US dollars last year, is facing a shortage of raw materials since the last few months as domestic resources are not enough to feed the industry.

This situation has resulted due to the over-exploitation of resources in the last few years and having not invested in sustaining these raw materials. This has lead to a situation where raw materials have to be imported.

According to the Vietnam Trade Village Association, the country is constrained to import raw materials like bamboo, rattan and sedge from other countries like Laos, Indonesia and Cambodia to run the sector smoothly.

These have to be imported at very high prices, considering the additional cost of transportation involved in shipping these resources and even cotton from India and costly raw silk from Bangladesh has to be imported.

Fibre2fashion News Desk - India

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