VN textile and garment industry may fail to reach $40 billion target

The target of exporting $40 billion worth of textiles and garments this year may be unattainable.

"In Vietnam, there are about 100 spinning factories operating, but most of them are facing a difficult situation," said Luong Vu Ngoc Duy, Director of Zara Textile.

VN textile and garment industry may fail to reach $40 billion target



The company, located in Dong Nai province, is operating at a moderate level in hopes that new policies will help escape the situation.

By mid-2018, enterprises had enough orders for 2018. But things are different in 2019. Enterprises can only take small orders and sign contracts every month.

Explaining this, the Ministry of Industry and Trade (MOIT) said buyers fear the US-China trade war would escalate, so they tend to place small orders instead of big ones.

The target of exporting $40 billion worth of textiles and garments this year may be unattainable.

Duy from Zara also said the orders this year are for shorter terms. The company even has to accept short 1-month orders.

 

Zara now exports products to Japan, South Korea and China, of which China is the largest market. Duy said the orders from China are enough for the factory’s capacity, while there are not many orders from Japan and South Korea.

In the past, Vietnam produced 2.2 million tons of yarn a year and exported 1.5 million tons, 60 percent of which to China. However, problems have arisen since late 2018 and the consumption has become especially difficult since early 2019.

A report showed that as of June 2019, the yarn export growth rate was 1.1 percent only. This is because the Chinese market, which consumes 60 percent of Vietnam’s total exports, has cut imports.

Not only spinning companies, but garment enterprises, especially small ones, are also facing a decline in the number of orders. The representative of a jeans company said as the number of orders is in sharp decline, the company now focuses on the domestic market.

Truong Van Cam, secretary general of Vitas, confirmed that the lack of orders occurs with many enterprises and some of them have orders just equal to 70 percent of the same period last year.

According to Pham Van Trinh, general director of Phong Phu Textile, in the first six months of the year, the textile and garment industry met many difficulties whi h have continued. Since the production cost in Vietnam is higher than other countries, importers have shifted to place orders with Cambodian, Myanmar and Indonesian producers.

Meanwhile, India, China, Pakistan and Bangladesh have devalued their local currencies to support exports.

According to MOIT, in the last 10 years, Vietnam’s textile and garment export turnover reached $27.4 billion.

Linh Ha 

Vietnamese textile and garment firms aggressively seeking more orders

Vietnamese textile and garment firms aggressively seeking more orders

Thirty-eight Vietnam’s textile and garment companies recently attended ‘Global Sources Fashion and Global Sources Lifestyle’, the biggest fashion exhibition in Hong Kong, to seek buyers.

Textile and garment enterprises must pay more attention to chemical management

Textile and garment enterprises must pay more attention to chemical management

Textile and garment enterprises consume a large amount of chemicals for their production activities. 

 
 

Other News

.
Chubb Life Vietnam honored 'Top Insurance Workplaces 2020'
Chubb Life Vietnam honored 'Top Insurance Workplaces 2020'
BUSINESSicon  14/09/2020 

Insurance Business Asia, a world-renowned insurance publication, has just named Chubb Life Insurance Vietnam Company Limited (Chubb Life Vietnam) among the “Top Insurance Workplaces 2020” in Asia.

Warm welcome to eagles, not to tigers or snakes
Warm welcome to eagles, not to tigers or snakes
BUSINESSicon  13/09/2020 

The author of this article received a request to write about his contributions to policies on foreign direct investment (FDI) attraction.

How to attract high-quality foreign direct investment
How to attract high-quality foreign direct investment
BUSINESSicon  13/09/2020 

Industrialization requires high-quality foreign direct investment (FDI). Many issues must be addressed, including how to developed a skilled workforce.

Lam Dong halts agricultural tourism projects
Lam Dong halts agricultural tourism projects
TRAVELicon  13/09/2020 

Despite keen interest from businesses to invest in agricultural tourism in the Central Highlands province of Lam Dong, the provincial government is not granting an approval to such projects for the time being.

Vingroup rejects rumour about selling stake in Vinmec and Vinschool
Vingroup rejects rumour about selling stake in Vinmec and Vinschool
BUSINESSicon  13/09/2020 

Vingroup rejects rumour about selling its stake in Vinmec and Vinschool, reiterating that these two systems play a crucial role in the group’s ecosystem.

Hotel rates down steeply as COVID-19 keeps away tourists
Hotel rates down steeply as COVID-19 keeps away tourists
BUSINESSicon  12/09/2020 

The hotel industry is facing arguably its greatest challenge as the impacts of COVID-19 keep away foreign visitors from the country.

MPI prepares new decree on SOE information disclosure
MPI prepares new decree on SOE information disclosure
BUSINESSicon  12/09/2020 

The Ministry of Planning and Industry (MPI) is developing a new decree to guide State-owned enterprises (SOEs) on disclosing information, aiming to...

Vietnam likely to gain export target for timber and wooden products this year: experts
Vietnam likely to gain export target for timber and wooden products this year: experts
BUSINESSicon  12/09/2020 

 Experts believe Viet Nam this year will reach its export target for timber and wooden products at US$12 billion, despite the impact of the COVID-19...

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 13
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 13
BUSINESSicon  13/09/2020 

Vietnam home to nearly 50,000 rooftop solar projects

Vietnam's energy sector a magnet for foreign investors
Vietnam's energy sector a magnet for foreign investors
BUSINESSicon  11/09/2020 

National electricity demand is expected to increase by 8.5 per cent a year until 2025 and 7 per cent until 2030, making Vietnam an attractive market for foreign energy investors.

Ministry asks for tightened management on condotels, officetels, shophouses
Ministry asks for tightened management on condotels, officetels, shophouses
BUSINESSicon  12/09/2020 

The Ministry of Construction has asked provincial and municipal people’s committees to tighten management on condotels, officetels, resort villas and shophouses 

Auto industry steers strategy towards wider supply chains
Auto industry steers strategy towards wider supply chains
BUSINESSicon  11/09/2020 

Vietnam’s automobile industry is transforming drastically but it still lacks scenarios to join the global supply chains after the COVID-19 pandemic.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 12
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 12
BUSINESSicon  12/09/2020 

Vietnam recovery prospects brightest in Southeast Asia: ICAEW

Versatility letting retail grow anew
Versatility letting retail grow anew
BUSINESSicon  10/09/2020 

The local retail sector is set to maintain its encouraging growth towards the end of the year, with new drivers coming online.

Anxious carmakers hoping losses remain in rear mirror
Anxious carmakers hoping losses remain in rear mirror
BUSINESSicon  10/09/2020 

Despite efforts in converting part of their facilities to produce ventilators and face masks for fighting the coronavirus pandemic, global carmakers are still reporting losses 

Vietnam's current account forecast at 3.7% in 2020
Vietnam's current account forecast at 3.7% in 2020
BUSINESSicon  10/09/2020 

Vietnam’s current account surplus could narrow to 3.7 per cent in 2020 from 4.9 per cent last year due to the impacts of the COVID-19 pandemic, according to Fitch Solutions.

Trade plummets at HCM City’s wholesale markets after second COVID-19 outbreak
Trade plummets at HCM City’s wholesale markets after second COVID-19 outbreak
BUSINESSicon  10/09/2020 

Wholesale markets in HCM City are facing a serious crisis due to the second COVID-19 outbreak. 

Businesses race against the clock to issue bonds
Businesses race against the clock to issue bonds
BUSINESSicon  11/09/2020 

Large corporations are rushing to seek capital through bond issuances before a new regulation, with stricter requirements, takes effect.

VN farm produce prices plummet amid oversupply, impact of Covid-19
VN farm produce prices plummet amid oversupply, impact of Covid-19
BUSINESSicon  11/09/2020 

Booth avocado, the specialty of Dak Lak province, is now selling at VND10,000-20,000 per kilogram, and the price of passion fruit has also fallen dramatically.

Fruit exports to China fall, but are offset by more exports to Thailand
Fruit exports to China fall, but are offset by more exports to Thailand
BUSINESSicon  10/09/2020 

China has reduced fruit imports, but Thailand has been buying more from Vietnam.

 
 
 
Leave your comment on an article

OR QUICK LOGIN