Home / Knowledge / News / Apparel/Garments / Tough year ahead for Vietnamese garment makers

Tough year ahead for Vietnamese garment makers

07
Mar '12
Vietnamese textile and garment industry is heading towards a tough year owing to continuing global economic uncertainties and a drop in export orders, said experts.

Dang Phuong Dung, General Secretary of the Vietnam Textiles Association, said Vietnam's leading garment importers including the EU, US and Japan would continue tightening their economic policies and reducing expenses in the coming months.

Vietnam's apparel exports to the US, with a year-on-year rise of 12 percent, grew to US$ 6.87 billion during 2011, making it the second largest exporter of apparels to the US.

Likewise, exports to the EU, the world's second biggest apparel importer, with a year-on-year rise of 33 percent, grew to US$ 2.5 billion, while that to Japan grew by 45 percent to US$ 1.86 billion.

Vietnam now ships its garments and textiles to 180 countries, with the Canada, US, Australia, EU, South Korea and Japan being its major export destinations.

According to economists, the current year and the next few years would be tough for Vietnamese textile and apparel industry as importers would continue to reduce their spending on these items.

During the last few months of 2011, Vietnamese textile and garment industry witnessed a drop in sales as well as orders in domestic as well as overseas markets.

Several enterprises, particularly the small and medium scale ones, have stated that during the first quarter of the current year, they are struggling to bag orders for the third and fourth quarters.

Meanwhile, experts predict that the world garment and textile markets would witness more stiff competition in coming times, as several countries would try to improve their quality.

Moreover, the EU and the US have permitted China to do away with the garment and textiles quota, following which Vietnam would face more stringent competition from China. Vietnam apparel sector is also likely to face increased competition from other Asian nations including Bangladesh, Sri Lanka, India and Pakistan, experts say.

Nguyen Thi Thanh Huyen, General Director of Garment 10, said Cambodia and Bangladesh have earned zero-duty export facility to the EU market, while Myanmar is lined up for the same. This would cause Vietnam to face stiff competition from these countries.

In order to withstand this competition, Vietnamese apparel firms would have to produce premium quality, finely designed goods, while closely managing the manufacturing process, Huyen added.

Vietnamese apparel export firms should keep a close eye on any changes in leading export markets and should also try to exploit potential of markets like Turkey, Middle East, Eastern Europe, Canada and Russia to boost their exports, Huyen said.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 15th May 2021

Australian govt earmarks Au$1 mn for boosting fashion industry

The government of Australia has earmarked Au$1 million to promote and ...

Pic: Sorbis / Shutterstock.com

Apparel/Garments | On 15th May 2021

Prime Content| US textiles & apparel imports grow 4.32% in Q1 2021

The import of textiles and apparel by the United States increased by...

Pic: Amanda Wakeley

Fashion | On 15th May 2021

British luxury fashion company Amanda Wakeley enters administration

The British luxury fashion designer Amanda Wakeley’s company, AW...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Increased need for online fitting solutions as retailers shift to...

Textile Industry, Head honchos

Textile Industry
Head honchos

The pandemic has reinstated need for organised retail spaces in Tier II...

Textile Industry, Head honchos

Textile Industry
Head honchos

Consumer sentiment will be conservative after lockdown

Ismail Ajani,

Ismail Ajani

Hollywood Footwear’s story began in 1946 when Jummabhai Ajani started the...

Barry Goodwin,

Barry Goodwin

UK based Amba Projex Ltd designs, manufactures, and installs industrial...

Benedetta Terraneo,

Benedetta Terraneo

Miko Srl, a subsidiary of US-based Sage Automotive Interiors and a member...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Daniel Odermatt, Ventile

Daniel Odermatt
Ventile

Ventile is a registered trademark used to brand a special high-quality...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

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

Leave your Comments


May 2021

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


Advanced Search