Vietnamese garment exports slowdown in May

19 Jun '12

2 min read

Continuing with the declining trend of past three months, Vietnam’s garment and textile exports plunged to slightly above US$ 1.1 billion in May this year. Resultantly, the sector’s overall exports for January-May 2012 stood at US$ 5.3 billion, up by only 7.7 percent, much below the growth figures registered during the previous years.

In spite of the fact that second and third quarters are considered to be the peak season for the textile and apparel industries, majority of the Vietnamese enterprises have not been able to secure sufficient export orders this time. Even for the enterprises that have secured orders, there has been a sharp reduction in their value.

Vietnamese apparel and textile industry is also facing several other problems like dearth of capital and production inputs, rise in cost of raw materials and environment fees, reduction in purchasing power of domestic as well as foreign buyers and rising stocks of inventories.

According to senior economist Le Dang Doanh, rising costs of raw inputs and waning global consumption are the two major issues impeding the way of Vietnamese textile and garment exporters.

He suggested that the Government should introduce effective measures to aid the clothing and textile export firms and help them sail over the current time of adversities.

Fibre2fashion News Desk - India

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