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    Vietnamese Clothing And Textile Enterprises Face Difficulties

    2012/10/29 12:57:00 85

    ClothingTextile EnterprisesTextile And Garment Association

     

    In the coming months, the situation is poor.

    Vietnam?

    Clothing and textile enterprises have no signs of easing up. The difficulties are mainly restricted or unable to obtain funds and lack of export orders.

    The purpose of this seminar is to help garment companies overcome problems and ensure new orders and funds.


    Vietnam investment and Development Bank said that the survey shows that all those companies earning more than 10 million dollars need medium and long-term loans to support their production improvement or investment plans.


    Vietnam investment and development bank is one of the co organizers of this symposium. The Vietnam textile and Garment Association (Vitas) and dun Bai company are also organizers of the exhibition.


    Deng Fangrong, vice president and Secretary General of the Vietnam textile and Apparel Association, said the demand for the European Union has declined sharply over the past few months, leading to a year-on-year decline in Vietnam's exports.

    Because of the lack of available funds, several domestic textile and garment companies have already outsourced their jobs.


    Deng Fangrong said that large-scale import import and outsourced orders indicate that domestic enterprises can not add additional value to their commodities. Imported raw materials and outsourcing orders are generally considered to be low returns on investment.


    Deng Fangrong once again said that low labor costs can not help the industry to maintain its competitiveness in the future, so the industry should find other ways, such as increasing investment in technology and equipment, increasing labour productivity and increasing competitiveness.


    Deng Fangrong added,

    Textile and clothing

    Departments' companies face several difficulties in obtaining bank loans.

    This is, although interest rates have dropped recently, it is still quite high compared with other countries.

    If the existing rules of allowing the 275 day grace period for garment manufacturers to end according to the Ministry of finance's proposal, the difficulties of domestic companies will be increased.

    The Vietnam textile and Apparel Association is working hard with other business associations before asking the government to consider the proposal of the Ministry of finance.


    Regarding the recent prospects of the national textile and clothing export, Deng Fangrong said that the prospects for the US market are good, but there is no sign of recovery in the EU market.


    Deng Fangrong added that the textile and garment industry should strive to solve problems related to raw materials and adhere to strict rules of origin, in order to open up opportunities for expansion of free trade agreements.

    free trade agreement

    And Vietnam's WTO membership is expected to open the way to new markets.


    The executive director of the American Chamber of Commerce in Vietnam, herb Cochrane, suggests that Vietnamese companies should study consumer choice so that they can produce products that satisfy consumer demand.

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