Vietnamese Clothing Companies Face Many Difficulties And Orders Are Unstable.

After the boom of 2011,

The clothing companies are suffering for years. They are eager to work.

In 2011, clothing companies were very busy, and they had large orders.

Vietnam's Ministry of industry and Trade said that the world economy did not recover from difficult times, and consumers continued to cut their spending.

In the first four months of 2012, Vietnam exported $4 billion 412 million, an increase of 14% over the previous year.

Difficulties come from all sides.

Overall, at the end of 5, clothing companies specializing in manufacturing products for Asian and Eastern European markets received enough orders at the end of the third quarter of this year.

However, since the beginning of this year, orders are coming.

Those made for domestic consumption.

The company has also fallen into a greater difficulty.

A representative of a clothing company in Xingan said they work in season.

To prepare for the sudden orders, the company had to import raw materials ahead of schedule.

Therefore, companies often lack liquidity.

At the same time, the company also pays wages for workers every month, even in low production season, so as to avoid receiving orders.

When asked why companies did not consider outsourcing for large companies with many orders, the company said small companies should not place too high expectations on them because orders were unstable.

Fan Xiong, public relations manager of Vitas, said labor costs have become a headache for clothing companies.

The higher minimum wage policy will take effect from October 2012, which will make the enterprise more burdens.

Wait support scheme

And clothing companies say they expect support from the state.

However, they are not interested in the five solution of the bailout business announced by the Ministry of finance.

A business unit said that the decision to reduce the corporate income tax rate and allow late tax payments had no meaning for them. They did not make profits and therefore did not need to pay taxes.

Yang Yu Rong, deputy general manager of Vietnam textile and Garment Group (Vinatex), frankly stated that the support scheme of the Ministry of finance did not bring any substantive support to the clothing companies, and the clothing companies went to the ground looking for orders.