Truong Van C?m, Deputy Chairman of VITAS also pointed out that Vietnam's currency has remained stable against the dollar while competitors in textile and garment sector such as India, Bangladesh, ASEAN countries and China, have devalued their currencies, increasing their export competitiveness.
High interest rates on bank loans ranging between 8 to 10 per cent, also make capital more expensive for local enterprises, he said.
VITAS reported that Vietnam's garment and textile export value in the first half of this year reached $12.6 billion, an increase of 4.72 per cent over the same period last year, accounting for 41 per cent of the sector's annual target for 2016.
The growth in the industry's export value was largely attributed to foreign direct investment (FDI) firms, while local firms had difficulties getting new export contracts, especially orders for shirts, trousers and jackets, VITAS said.
It warned that the lack of export orders could worsen and many small- and medium-sized firms may have to shut down. VITAS predicted the industry might earn only $29 billion from exports this year, $2 billion less that the target, if the situation does not improve.
Other experts at the conference also urged local textile and garment firms to invest in modern technology for the production of yarn and fabric.
Local textile and garment enterprises also proposed reducing the frequency and time it takes to check garment materials for customs clearance as a means to increase production and competitiveness. (SH)
Fibre2Fashion News Desk – India
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