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    Vietnamese Textile Enterprises Face Severe Challenges In The Second Half Year

    2011/7/20 10:33:00 48

    Vietnamese Textile Enterprises Face Challenges

    Because the main foreign buyers are

    Economics

    In the last two quarters of this year, Vietnamese garment manufacturers will be faced with a downturn in export orders.


    Vietnam?

    Spin

    The main markets for goods exports include the United States and the European Union. Due to the current economic turmoil, Vietnam's exports to the main markets in the last two quarters of this year are expected to drop by about 30%.


    Xigong

    clothing

    Nguyen An, head of the organization, said the sharp reduction in orders would lead to increased competition in domestic textile manufacturers, and they would cut prices and fight for business.


    Analysts say that in the past two years, businessmen in the world's big markets favor Vietnamese textile manufacturers and other countries, and China has been left out in the cold because of high investment costs.


    However, the most populous countries in the world are now focusing on the textile industry, because domestic inflation has soared and they have attracted customers by cutting prices.


    According to Reuters, in June, China's consumer price index increased by 6.4% over the same period last year, slightly higher than the 6.3% growth forecast by economists, of which food, consumer goods and property rose sharply.


    Pham Xuan Hong, vice president of Vietnam textile and Garment Association, suggests that domestic textile producers should start to pay close attention to the international market, although export orders are still optimistic.


    Textile retail prices increased by 10-15% over the same period last year, but the cost of investment increased by two times.


    Large producers with large numbers of employees say that their profit margins are decreasing due to a minimum wage increase.


    The government recently decided to raise the minimum wage by 14% from May 1st to 730000 from the 730000 Dong Dong (35 dollars) to 830000 Vietnamese shield (US $40) / month.


    Statistics show that in the first 6 months of 2011, textile manufacturers were Vietnam's largest export earner, with an export income of US $6 billion 200 million.


    This year, exports are expected to reach US $13 billion 500 million.

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