Vietnam'S Textile And Garment Industry Must Get Out Of Difficulties In 2016

Many Vietnamese small textile and garment enterprises plan to merge, while large companies try various ways to retain customers, including lower prices.

For the past 10 years, the company has been specializing in manufacturing for us and Japanese manufacturers.

The manager of Vietnam company said that the company was facing difficulties because its order was (2015) very few.

Before (2014), the company predicted that the market demand would increase, so it decided to set up a new factory in Pingyang Province, but the number of orders was not as good as expected.

Many small businesses in North and South Vietnam, including Hu Zhiming and North Ning, have decided to auction factories such as canals, which are becoming increasingly difficult.

The auction price is between the 60 million shield and the 35 billion shield, depending on the time and size of the plant.

Not only small businesses, big companies also face difficulties, such as Vietnam's largest

With Vinatex of Garment Group, the revenue growth of (2015) was 11%, but the profit before tax was the same as that before (2014).

Hoang Ve Dung, the deputy general manager of the company, said that textile and garment enterprises must haggle their prices in order to compete with mainland China, India and Malaysia.

and

Competition is also a headache for Vietnamese enterprises. Dung, manager of Vinatex, said that although the cost of labor in mainland China has increased, Chinese manufacturers still have a lot of interest compared with Vietnam, because canal can effectively control the supply and demand of materials.

The canal said Vietnam only had to increase production of materials to attract other markets.

Direct investment in textiles and clothing has increased dramatically recently. According to a report, FDI went to (2015) to reach US $1 billion 500 million, equivalent to the total sum of domestic investment in the past 20 years.

Vinatex remains pessimistic about the economic boom of this (2016) year. The group plans to increase productivity by 11%, and its target is to increase revenue by 8%.

Tran Viet, a senior manager of the company, said that the company will be very careful in its production plan this (2016) year because exchange rate fluctuations will affect the efficiency of the company.

Qu said that the volatility of the Vietnam shield was one of the reasons why the company's profits had not increased.

Canal explains that RMB devaluation in mainland China is 4.8%, while the currency of Malaysia and India in Vietnam's fiercely competitive countries has also devalued the Vietnamese shield.

In addition, the price of cotton and polyester fiber has also dropped dramatically, affecting fiber manufacturers, cancelling contracts or asking for price reductions.