Vietnam Textile and Apparel Association

Receiving less order worries Vietnamese garment manufacturers

Vietnam Textile and Apparel Association (VITAS) stated that Vietnamese garment manufacturers have received less order in the first half of 2019– grew by less than 9% by the end of June – than 2018 and the shortage of orders is becoming more common.

However, the textile and garment industry earned approximately $18 billion from exports in the first half of 2019, up 8.61 percent year on year. The figure included $14.02 billion worth of clothing and $1.02 billion worth of fabrics, up 8.71 percent and 29.9 percent respectively.

Truong Van Cam, Vice President, VITAS expressed concern that the number of orders in the first half of 2019 was just equivalent to 70% of the figure in the same period last year.

This year the Vietnam textile and apparel industry have targeted to achieve US$40 billion export. Meaning by the end of this FY, it will not be able to meet up with the export target with the current pace.

Other regional key apparel players like India and Indonesia are facing a similar situation as demands from customers are getting higher while pressure to cut cost and higher trade barriers, such as import duties or quality inspection are also taking a toll on them and Vietnamese firms are no exception, Truong Van explained.

To attract more orders, local producers must strictly comply with requirements of buyers and protect workers’ rights, Nguyen Thi Hong Anh, VITAS Vice Secretary-General, said.

Cam elaborated Vietnam’s tougher reality as foreign apparel manufacturing countries have taken several measures to support their domestic exporters, for example, cutting corporate income tax and duties on imported apparel materials, and devaluing their currencies.

Truong Van Cam was also optimistic about the next six months, as it is normally the time for high-value orders for products like jackets, suits and winter sportswear.

Nguyen Thi Hong Anh, Vice Secretary-General, VITAS said, “To attract more orders, local producers must strictly comply with requirements of buyers and protect workers’ rights.”

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