Vietnam Industry Analyst: Import Of Clothing Materials Has Increased Significantly

Analysts are trying to find out the reason behind the increase, because Vietnam is trying to narrow the trade gap by reducing imports and increasing exports of goods that can be produced locally.

Imports of clothing materials hit a new high in the first 2010 months.

According to the latest data from the Ministry of industry and trade, the value of materials imported by clothing companies has exceeded $5 billion so far, including $2 billion 800 million of fabrics, an increase of 27% over the same period, and cotton imports up to 350 million US dollars, up 75% over the same period last year.

Garment manufacturers are diversifying their imports further.

Now, for the garment industry, it is necessary to expand production to meet the increasing demand for orders.

Due to the revival of the world economy, many garment companies have obtained orders from foreign importers.

The increase in imports is also attributable to a sharp rise in material costs.

The company said that in the past 7 months,

Li Quanan, President of the Vietnam textile and Garment Association (Vitas), said that because of the rising price of clothing materials, enterprises must buy more cotton, fiber and fabrics to ensure that exports grew by 15-17% and completed the contracts already signed.

Analysts warned the increasing cost of materials, and the Vietnamese textile and clothing association also informed member companies to import important materials as soon as possible.

Another industry pointed out that Vietnam has now become a factory in the world outsourcing plan.

Therefore, Vietnam needs to import more materials if it needs to export more goods.

The number of domestic goods is maintained at about 30%.

However, Vinatas said exports of clothing goods in 2010 are expected to reach $1 billion, and a growth of $200 million in June.

In the first 7 months of this year, exports of goods had reached US $5 billion 800 million.

Exports to the United States increased by 23% over the same period last year, while exports to Japan increased by 15% and exports to ASEAN countries increased by 30%.

Exports to Korea increased by 80%.

At the same time, exports to the EU increased by only 1.5%.

SeanDoyle, head of the European Union delegation to Vietnam, said that the EU market could not be fully recovered by the end of 2010, and consumer confidence declined due to the public debt crisis.

On the other hand, Vitas believes that the target of $10 billion 500 million for garment export in 2010 is expected to be completed.