Vietnam'S Economic Crisis, Textile And Leather Industry Encountered Difficulties

Since the beginning of this year, a number of economic indicators in Vietnam have been flashing red lights, causing financial markets to be unusually volatile, and currency crises are imminent.

The stock market lost nearly 60% during the year.

Two years ago, the world's most successful Vietnamese stock market is creating another new record: the year's drop is nearly 60% so far.

In August 6th, Vietnam's benchmark VN index fell by 1.497%. So far this year, the stock market has fallen by more than 58%, ranking the highest in the world.

The trend of Vietnam's stock market in the past few years is very similar to that of other emerging markets, but the fluctuation is even greater.

The Vietnam stock exchange index rose from 133 in October 21, 2003 to 1170 in March 12, 2007, and its total market value soared from less than 1 billion US dollars at the beginning of 2006 to 15 billion US dollars.

By the end of January 2007, the price earnings ratio of the 20 largest listed companies in Vietnam had reached 73 times.

The reversal of the stock market has been showing signs of growth since last year.

From October 3, 2007 to last Friday, in just 8 months, the Vietnam stock exchange index fell from 1106 to 384.24.

The stock market value of the Hanoi stock exchange has decreased by more than 45% this year.

At present, the P / E ratio of Vietnam is less than 10 times, but some people continue to see it down.

Templeton Asset Management Co Mai Jiahua said that the MSCI emerging market index has a price earnings ratio of about 13.5 times, and the Vietnamese stock market is still not cheap enough.

According to a survey conducted by Hanoi Economic University in Vietnam, Vietnam's textile and garment industry is one of the most waste producing industries in the country.

Most of the waste comes from the dyeing and finishing and weaving department of textile and garment industry. Because of the large amount of water needed for dyeing and finishing cloth, a large amount of fiber will be produced when weaving.

The industry has put forward requirements for pollution prevention and control in the dyeing, finishing and weaving department.

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What is worrying is that up to 65% of Vietnam's total waste water has come from textiles and garment industry so far, and there is no relevant treatment method.

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In terms of foreign exchange earnings and production, the textile and garment industry is one of Vietnam's largest industries.