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Power cuts disturb garment, textile, footwear industries

21
May '10
Electricity cuts are affecting the apparel, textile and footwear manufacturers in Dong Nai and Binh Duong provinces, as the industries are facing prolonged work stoppage, losing a number of customers.

Two-day power cut in a week, since the month of April, has been bothering these industry owners, as power cut is disturbing production and delivery schedules of a number of enterprises.

For instance, production of the Nam Dinh Garment Joint Stock Company was reduced by 15 to 20 percent in April compared to its production in March. Such conditions have forced the company to plan negotiations with importers to extend shipment durations, which is not an easy task.

Clothing, textile and footwear producers have signed a number of export orders for the current year, since US, Chinese and South Korean markets had started witnessing recovery from the global economic meltdown.

However, with the ongoing electricity cuts, these Vietnamese industries are unable to deliver on-time, thereby, leading to paying hefty fines and losing out on possible customers.

In Binh Duong Province, the power company unexpectedly changed its two-day-a-week-power-cut schedule, which caused difficulties for enterprises in the province. Vietnamese garment, textile and footwear industries are the imperative export sectors of the country, which are witnessing recovery against world economic crisis.

Industries are trying to meet export deadlines by working for extra hours during regular power supply days, including weekends and holidays, thus, fighting the current situation.

The export turnover of country's garment and textile industry soared up to US $9.1 billion, last year, acquiring the topmost position amongst the country's major export products. Meanwhile, revenue generated from exports of footwear stood at $4 billion.

Fibre2Fashion News Desk - India


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