Vietnam : Vietnamese garment firms should cut logistics cost: Expert

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Home / Knowledge / News / Apparel/Garments / Vietnamese garment firms should cut logistics cost: Expert

Vietnamese garment firms should cut logistics cost: Expert

30
Dec '16

At a Vietnamese seminar, experts suggested that textile raw material importers should club their imports to reduce logistics costs, since logistics cost currently accounts for nearly one third of the cost of each textile product that is exported. In their opinion, the Vietnamese apparel industry could save more than $1 billion per year by pooling imports.

Vietnamese media reports quoted Nguyen Tuong, vice chairman of the Vietnam Logistics Association as saying that a majority of textile raw materials are imported while garment products are exported.

“By working together, these importers should purchase textile raw materials by combining their orders; thereby create a large shipment, which could offer benefits of reducing logistics costs,” Tuong added.

“High logistics costs are weakening competitiveness of Vietnamese apparel products in global markets, so it is utmost necessary to reduce these costs,” Truong Van Cam, vice chairman of Vietnam Textile and Apparel Association observed. (AR)

Fibre2Fashion News Desk – India

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