VietnamCredit
VietnamCredit About Us Cafe€redit Contact Us
Login Register
0
USD
GO TO CART
Check out

Textile still faces difficulties in the last months of the year

Wednesday 06, 11 2019
Vietnam's textile and garment industry is still facing many difficulties, which are the order competition between partners and the shortage of orders.
Textile still faces difficulties in the last months of the year
According to statistics of the Ministry of Industry and Trade, in the past 10 months, the export turnover of the textile and garment industry reached 27.4 billion USD, continuing to hold the position in the top 5 of Vietnam's key export items.
In the last months of the year, textile enterprises have made efforts to boost production, business, seek partners and expand export markets. The United States continues to be the largest export market of Vietnam in the past 10 months, with a turnover of US $ 49.9 billion, up 26.6% over the same period last year. ASEAN reached 21.3 billion USD, up 2.6%; Japan reached 16.6 billion USD, up 7.5%; South Korea reached 16.6 billion USD, up 9%.

However, Vietnam's textile industry is still facing many difficulties and challenges. Competition for orders between domestic enterprises and foreign direct investment (FDI) enterprises as well as countries such as Thailand, India and Indonesia is getting fiercer and fiercer.
In addition, many businesses are facing a shortage of orders, even some businesses have had to close, facing bankruptcy.
The cause of this situation is because most orders are tending to be divided, customers are indifferent to long-term orders, especially the low price squeezing situation, making the profit of the business decline. Orders from China tend to switch to countries with tax incentives such as Bangladesh, Cambodia instead of Vietnam as before.

Besides, the advantage of cheap labor no longer exists when many countries have labor costs that are only half of Vietnam's textile industry. In order to attract orders, countries have applied many policies to support their textile enterprises such as reducing many taxes, promoting exports, making the risk of losing Vietnamese enterprises' orders increasing.
Mr. Truong Van Cam, Vice Chairman and General Secretary of Vietnam Textile and Apparel Association (Vitas) said that in the context of fierce competition, achieving a growth rate of about 9% is a great effort of the whole textile industry.

According to industry experts, from now till the end of the year, in order to achieve the export target of 40 billion USD, businesses must actively seek partners and expand export markets. There is a need to change the mode of production and business in accordance with the trend, to meet the increasing needs of consumers. We also need to focus on exploiting orders requiring high technology, making the most of the skilled human resources in the country as well as meeting fast, accurate delivery time and quality assurance according to customer requirements.

You may also like

Generous but hard-to-get
Thursday 09, 04 2020

Generous but hard-to-get

Banks have been reducing interest rates and providing preferential loan...
Business plans of pharmaceutical firms amidst COVID-19
Tuesday 07, 04 2020

Business plans of pharmaceutical firms amidst COVID-19

In the group of pharmaceutical firms which have declared their business...
+84 37 99 44 511