Garment & textile industry strives to escape inflation
19
Apr '08
Apr '08
Exorbitant prices of consumption goods and other raw materials coupled with weakening US dollar have raised serious concerns for the textile and garment exporters of Vietnam.
To bring about a solution to this perpetuating crisis, members of HCM City Textile, Garment, Weaving and Embroidery Association recently concluded a meeting.
Exporters and producers at the meeting unanimously voiced their opinion about the huge impact of inflation and weakening dollar on the garment and textile industry.
Production activities, in particular, have been found to endure with the hardest of the prevalent situation. Additionally, soaring prices have also impelled the enterprises to hike the salaries of the workers to ensure a decent standard of life for them.
Moreover, a close study has showed that with an export worth US $10 million, the enterprises will suffer a loss of approximately VND10 billion, due to appreciation of Vietnamese currency.
All the members at the meeting voted in favor of acquiring assistance from macro-economic management agencies to overcome the current difficulties. Additionally, it became quite clear that to outlive cut-throat competition, the foremost task of the enterprises will be to ensure their own survival.
As such, entrepreneurs must restructure their production activities with fewer workers and higher efficiency and ask for Government aid to deal with the present circumstances.
Some of the most logical suggestions to the existing grievances that emerged from the meeting included promotion of export-import activities, banks to offer loans at the lowest trading price, abolishment of collection of trade union fees and other kinds of fees to increase workers salaries and banks to buy-back US dollars from export contracts with highest trading band.
It is hoped that the outcomes of the meeting will have a far reaching effect on the industry which is expected to come out of this pitfall as there are indications of a positive US exchange rate and improving market conditions.
To bring about a solution to this perpetuating crisis, members of HCM City Textile, Garment, Weaving and Embroidery Association recently concluded a meeting.
Exporters and producers at the meeting unanimously voiced their opinion about the huge impact of inflation and weakening dollar on the garment and textile industry.
Production activities, in particular, have been found to endure with the hardest of the prevalent situation. Additionally, soaring prices have also impelled the enterprises to hike the salaries of the workers to ensure a decent standard of life for them.
Moreover, a close study has showed that with an export worth US $10 million, the enterprises will suffer a loss of approximately VND10 billion, due to appreciation of Vietnamese currency.
All the members at the meeting voted in favor of acquiring assistance from macro-economic management agencies to overcome the current difficulties. Additionally, it became quite clear that to outlive cut-throat competition, the foremost task of the enterprises will be to ensure their own survival.
As such, entrepreneurs must restructure their production activities with fewer workers and higher efficiency and ask for Government aid to deal with the present circumstances.
Some of the most logical suggestions to the existing grievances that emerged from the meeting included promotion of export-import activities, banks to offer loans at the lowest trading price, abolishment of collection of trade union fees and other kinds of fees to increase workers salaries and banks to buy-back US dollars from export contracts with highest trading band.
It is hoped that the outcomes of the meeting will have a far reaching effect on the industry which is expected to come out of this pitfall as there are indications of a positive US exchange rate and improving market conditions.
Must ReadView All
Textiles | On 18th Dec 2018
Bangladesh jute industry at risk due to old technology
Bangladesh’s jute industry is losing productivity and competitiveness ...
Textiles | On 18th Dec 2018
Cotton trading pace slows down in Brazilian market
With the low quality of the batches available in the Brazilian market ...
Apparel/Garments | On 18th Dec 2018
Destination Maternity reports sales of $92.8 mn in Q3
Destination Maternity Corporation, the world’s leading maternity...
Interviews View All
Rashi Menda
Zapyle
Every fifth sale we make on Zapyle is a repeat purchase
Evelyne Cholet
UCMTF
‘France had a reputation of being big in new ideas, but poor in marketing...
C. Dhandayuthapani
Mag Solvics Pvt. Ltd
ITME 2016 exploited our full strength like never before
Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....
Honghua Digital Technology Stock Co., Ltd. specialises in the R&D,...
Italy-based Lafer SpA is one of the most innovative surface finishing...
Justin Chan & Shyam Gollakota
University of Washington
A fabric that can store data without any electronics or batteries has been ...
Johan Berlin
InvestKonsult Sweden AB
Investkonsult Sweden AB has been buying and selling second-hand textile...
Eamonn Tighe
Nature Works LLC
Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...
Aditi Somani
Aditi Somani
Aditi Somani specialises in luxury fusion wear with international cuts and ...
Vaanee Bhatia
Gritstones Clothing
<div>Delhi-based Gritstones Clothing offers quality and exemplary style...
Wendell Rodricks
Wendell Rodricks
"We should not compare India and the West. There are things we do that...
Leave your Comments
Recommended
Want to know what happened in the textile world this week? Watch now!
news category
Related Categories:
