Home / Knowledge / News / Apparel/Garments / Labor and financial crisis threatens garment exports
Labor and financial crisis threatens garment exports
17
Jul '08
The garment industry of Vietnam still needs to export goods worth US $5.3 billion in the second half of this year to meet its annual target of $9.5 billion. However, in the midst of burgeoning orders and volatile market situation, the sector is facing serious capital and labor crunch.

Mr Vu Duc Giang, General Director of Vietnam Textile and Garment Group (Vinatex) has also observed that apparel companies are facing a lot of hurdles including high interest rates, rising cost of production and shortage of workers.

Despite huge orders being placed for Vietnamese garments, enterprises are failing to meet the international demand because of a surmounting financial crisis which cannot be resolved even with bank loans because of high interest rates.

Industrial sources informed Fibre2fashion that the situation was worse for enterprises making FOB contract for exports since they do not have enough capital for importing materials.

To add to the already deteriorating conditions, there is a rise in the number of workers leaving their jobs which is creating another pressure on the entrepreneurs. Although most of the garment companies have increased the salary and allowances of labors by 15-20 percent, it is difficult to ascertain if the situation would get any better.

Experts believe that unless the Government steps in to help the garment companies access loans at a reasonable rate, it is unlikely to achieve the export target of $9.5 billion.

However, Mr Le Quoc An, Chairman of Vietnam Textile and Apparel Association (VITAS) is optimistic that manufacturers, especially exporters, would be extended full support to overcome the existing difficulties.

While members of VITAS has recommended that the VND lending rates should be cut to 15 percent and foreign currency lending interests rates to 8 percent, Vinatex proposed slashing fibre import tax rate from 3 to 0 percent as domestic supplies cannot meet the ever growing demand.

Additionally, enterprises are also trying their level best to retain workers and are considering the task of improving their standards of living and giving it top priority as a long term development plan. Most important, there is a need to create an atmosphere where workers and employers can reach a level of understanding.

Fibre2fashion News Desk - Vietnam


Must ReadView All

Tajik textile-apparel exports rise 30% in Jan-Aug 2018

Textiles | On 16th Oct 2018

Tajik textile-apparel exports rise 30% in Jan-Aug 2018

Tajikistan’s production of textile and apparel rose by 30 per cent in ...

Courtesy: Good On You

Apparel/Garments | On 16th Oct 2018

Good On You aims to give consumers access to brand info

Australia based Good On You, an app that provides ratings of over...

Courtesy: Rieter

Textiles | On 16th Oct 2018

Rieter launches new ring and compact spinning machines

Rieter has launched G 37 and G 38, the new ring spinning machines,...

Interviews View All

Rashi Menda, Zapyle

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Top executives, Textile industry

Top executives
Textile industry

It will take some time for the people to change their buying choices

Divyesh Mashruwala, Akshar Industries

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Riddhi Jain,

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Ashish M Amin,

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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


October 2018

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

news category


Related Categories:

Advanced Search