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Inadequate orders pester Vietnamese garment firms

24
Feb '12
Vietnamese garment enterprises are anticipating the current year to be a tough one because many of them have still not bagged adequate overseas orders to keep them busy for long. Moreover, the scarcity of labour is also a cause of concern.

As informed by the Vietnam Textile and Apparel Association (Vitas), just 70 percent of firms have sufficient orders for first quarter of the year, and only a handful of them have orders for the second and third quarters, while others are operating with very low volume of orders.

Viet Tien Garment Company, a leading producer-cum-exporter of garments, has only been able to book orders to suffice for the first quarter, and this is in spite of the company being a major producer, which has good business links with importers.

Pham Van Kiet, Deputy General Director of Viet Tien, said the company's present situation is very much different from last year, when by this time they had already secured orders for the entire year, while this year they are still struggling to bag enough orders for the second quarter.

Meanwhile, Vitas Deputy Chairperson Pham Xuan Hong said worker's deficit experienced from beginning of the year to mid-February has now eased, but still the enterprises are enduring unhealthy competition in luring workers.

Some of the firms are trying to attract workers by offering high wages, but then after that they try to curtail it by adopting techniques like imposing a fine of 200,000-300,000 dong in instance of worker taking a day off, or if they fail to prepare decided number of product pieces or make any mistake.

Though garment enterprises are making efforts to attract workers with higher salaries, according to Hong, this is just an interim solution.

Vietnam's garment exports for the month of January this year fell to US$ 1 billion, showing a year-on-year decline of 12 percent.


Fibre2fashion News Desk - India


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