Vietnam'S Garment Industry Faces Difficult Times

Vietnam's clothing and textile industry will face a downward contract next year, thanks to weak economic conditions in the US and Europe, though the monthly export earnings exceed $1 billion, Vietnam.

According to statistics from the Ministry of trade and industry of Vietnam, the textile and garment sector can achieve export target of 130-135 billion US dollars this year, due to the growth in the first 9 months of this year.

In the first 9 months of this year, Vietnam's textile and clothing exports amounted to US $10 billion 500 million, the highest level in the past four years.

The Ministry of trade and industry said Vietnam's textile and clothing industry was affected by less consumption in the US and European markets.

The textile and garment industry experienced a shortage of funds, and imports of raw materials amounted to US $9 billion 200 million.

The increase in the minimum wage of workers beginning this month will also have an impact, which will put pressure on the exporters of clothing and textiles, as wages account for 65% of the total cost.

Li Jin Chang, deputy general manager of Vietnam National Textile and Garment Group, said that the lack of contracts made small and medium-sized enterprises particularly difficult.

Fan Chunhong, vice president of the Vietnam textile and Garment Association, said exports fell by 10-15% last quarter, due to a decline in contracts from the US and Europe.

The Ministry of trade and industry said that the textile and garment industry will promote the tilt of capital to business when promoting cooperation between large and small and medium-sized enterprises and sharing market information.

Clothing and textile producers should actively develop cotton cultivation to maximize production capacity.

The goal of the Vietnamese government is to develop the textile and garment industry as a key export sector.

The annual growth rate of the textile and garment sector reached 12-14%, while the export growth rate reached 15%.

The Ministry of trade and industry hopes that the annual output of cotton will reach 500 thousand tons, generating 2 million 750 thousand jobs.

The main products of the textile and garment industry will be fiber, cotton, knitwear and clothing. The aim is to increase the proportion of the original design and reach 20% by 2020.

Vietnam currently has more than 3700 costumes and