Home / Knowledge / News / Textiles / Vietnam textile sector orders hit by African competition

Vietnam textile sector orders hit by African competition

19
Dec '19
Pic: Shutterstock
Pic: Shutterstock
Vietnamese textile firms are witnessing declining orders as buyers are moving to cheaper developing countries, especially in Africa. Many businesses this year do not have enough orders for 2020, with a few have reported a 20 per cent drop in orders from last year. Many have not signed long-term contracts for products, but only monthly or quarterly ones.

Normally, by the end of a year they would have enough orders for the whole of the following year, according to Nguyen Van Thoi, chairman of TNG Investment and Trading JSC, which makes garments.

An anonymous Vietnam Textile and Apparel Association (VITAS) official told a Vietnamese newspaper that many orders have shifted to emerging countries in Africa, while competition with textiles superpowers like China, India and Bangladesh is becoming increasingly fierce.

Even China’s orders are being transferred to countries with preferential tariff rates such as Bangladesh and Cambodia.

Even the fibre industry is facing increasing competition from foreign businesses and rivals in countries such as India, Thailand and Indonesia, he added.

Experts had forecast at the beginning of the year that the US-China trade war and new free trade agreements (FTAs) signed by Vietnam would help it increase textile exports, but had done a U-turn by mid-year to say there would be a lack of orders, VITAS said.

This is due to a slowdown in the global economy, affecting consumer demand, and failure by Vietnamese enterprises to adopt radical solutions to comply with FTAs’ rules of origin, VITAS explained.

Some 70 per cent of the fabric used to produce garments in Vietnam is imported from mainland China or Taiwan, VITAS chairman Vu Duc Giang said.

Other difficulties being faced by Vietnam’s textile industry include rising costs of raw materials from China and lower prices demanded by foreign buyers.

Vietnam is losing its low labor cost edge over other countries even as its use of technology in production remains limited, leading to reduced competitiveness, VITAS said.

Garment exports in the first 11 months of this year were up nearly 8 per cent year-on-year to $30 billion, according to figures from the ministry of industry and trade.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Textiles | On 25th Jan 2020

EU, 5 African nations start talks to deepen trade ties

The European Union (EU) recently concluded the first round of...

Pic: Shutterstock

Apparel/Garments | On 25th Jan 2020

Pak-PRC textile cooperation to focus on readymade garments

Chinese and Pakistani experts have agreed to forge a textile...

Pic: Shutterstock

Textiles | On 25th Jan 2020

India's GDP expected to grow at 5.5% YoY in FY21: IndRa

India's gross domestic product is expected to grow at 5.5 per cent...

Interviews View All

Kaizad Hansotia, GetNatty

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Divyesh Mashruwala, Akshar Industries

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Nitin Soni, Dolphin Jingwei Machines

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Alphonse Reddy,

Alphonse Reddy

Bangalore-based Sunday designs and makes mattresses and accessories that...

Rushiraj Mulani,

Rushiraj Mulani

The Shradhdha Group of companies was established in 2010 and is based out...

Larry Fontana,

Larry Fontana

Italy-based Lafer SpA is one of the most innovative surface finishing...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Daniel Odermatt, Ventile

Daniel Odermatt
Ventile

Ventile is a registered trademark used to brand a special high-quality...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

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

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


January 2020

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


Advanced Search