Home / Knowledge / News / Apparel/Garments / Vietnam garment workers may lose jobs as export orders dip

Vietnam garment workers may lose jobs as export orders dip

25
Jul '12
The Southeast Asian nation of Vietnam is currently witnessing a slump in demand for its apparels from its major markets, and if the trend continues, it may result in loss of jobs for several garment workers in the country. 
 
According to Vietnam Textile and Apparel Association (VITAS), garment makers in the country have been battling against several odds like dearth of export orders and other market difficulties that have arisen on account of the ongoing EU debt crisis.
 
VITAS said only big garment enterprises have been able to secure orders for the third quarter of current year, while demand slump has compelled a number of small and medium sized producers to cut production.
 
It is estimated that demand from the EU markets has fallen sharply by almost 20-30 percent over the past few months, compared to demand for Vietnamese apparels during the same period last year.
 
As noted by the General Statistics Office, the Vietnamese garment and textile industry grew at a year-on-year rate of 8.7 percent during first half of the current year, which is much lower than the growth rate of 30 percent year-on-year witnessed during the corresponding period of last year.
 
If the adversities continue, VITAS apprehends that it may force the textile and garment makers in Vietnam to cut their workforce by about 20 percent.
 
In addition to the fall in export orders, Vietnamese textile and garment producers, particularly the smaller ones, are also faced with other challenges like adhering to stringent quality and social responsibility norms, set by the EU markets.
 
Efforts made by Vietnamese enterprises to adhere to EU quality norms result in increased input costs to producers, which ultimately reduces their price competitiveness, experts say.
 
Vietnamese garment producers face tough competition from Cambodia, Myanmar, Bangladesh and China. While Cambodia and Bangladesh already enjoy duty-free access for their garment exports to the EU, Myanmar is also close to achieve the same status.
 
Further, deceleration in value of Euro against US dollar has also cut the profits of Vietnamese exporters, as they pay in US dollars for their raw material imports from Thailand, China and Taiwan, but receive payment in Euros for their exports to the EU countries.
 

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 21st Feb 2020

France unveils environment score system for apparel

France has launched a system under which apparel may now display a...

Pic: Asia Pacific Rayon

Textiles | On 21st Feb 2020

APR’s new viscose rayon production facility inaugurated

The president of Indonesia, Joko Widodo, has inaugurated Indonesia's...

Pic: II.studio / Shutterstock.com

Fashion | On 21st Feb 2020

Re-commerce gaining momentum in India

The hazards of fashion industry are well-known, and to curb its...

Interviews View All

Textile industry, Head honchos

Textile industry
Head honchos

Relaxation in FDI norms will support growth of retail sector

Textile industry, Head honchos

Textile industry
Head honchos

It is a well-calibrated budget

Top executives, Textile industry

Top executives
Textile industry

Sustainable fashion is also ‘slow fashion’

Pietro Turrin,

Pietro Turrin

Industrie Tessili Bresciane (ITB) has served numerous industries and...

Michael Van Den Dolder,

Michael Van Den Dolder

Family-owned German textile machinery manufacturer Trützschler operates...

Alexander Foll,

Alexander Foll

Germany-based H Stoll AG & Co KG manufactures flat knitting machines....

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

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

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Eric Scholler, Groz-Beckert

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

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


February 2020

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


Advanced Search