Home / Knowledge / News / Textiles / Vietnamese textile firms propose wage freeze
Vietnamese textile firms propose wage freeze
27
Jul '16
The Vietnam Textile and Apparel Association (VITAS) has proposed that the Government freeze minimum wage in 2017 and only increase it once every two or three years to create favourable conditions so that textile and garment companies remain competitive.

The suggestion by VITAS was made a conference in Hanoi where speakers underlined that Vietnamese textile and garment enterprises are at risk of missing their export target for 2016 due to reduced competitive ability and lack of export orders.

The minimum wage, which has risen an average 26.4 per cent per year for local enterprises and 18.1 per cent each year for enterprises with foreign investment in the period of 2008-16, is a major factor that is eroding Vietnam's competitiveness, according to Vitas.

The increases in minimum wage also entail increased payments of insurance and union dues, further burdening enterprises, it said.

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


Must ReadView All

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

APTMA calls for implementation of PM’s export package

Textiles | On 21st Oct 2017

APTMA calls for implementation of PM’s export package

The All Pakistan Textiles Mills Association (APTMA) has called for...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Suresh Patel
Sidwin Fabric

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

Igor Chapurin
Chapurin

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search