Export orders decline led many textile businesses to find new markets or back with domestic clients
That fact was Mr. Pham Xuan Hong, President of the textile embroidered knit HCM, cast with the reporter of the employee. Textiles is one of the main export sector of Vietnam throughout the years with tens of billion USD per year but are in the most difficult period.
The first drop in turnover
According to figures from the General Department of customs recently, during the last half of July-2016, the first textile exports plunged 43 million USD, respectively rising 3.7%, July exports of this commodity to 2.32 billion dollars. Altogether 7 months, exports of textiles reached only 13.15 billion, an increase of 4.7% compared to the same period last year, much lower than before. Even capital market expectations and have high growth rates previously only reached 6.52 billion U.s. DOLLARS, an increase of 3.9% over the same period.
In the report on the recent American economic situation related to the textile industry, the business (DN) said American importers are looking to promote the consumption of inventory rather than the new order. Therefore, even though the U.S. market is expected to more and better assessment of the EU also inevitably the DN Free encounter about the order.
Agreement on trans-Pacific Partnership (TPP) Despite expectations bring great advantages to the textile sector but till now not yet in force. Meanwhile, effects from TPP again caused many difficulties for the DN free when the countries are not members of TPP launched several policies to support domestic textile industry to raise the competitiveness.
With this result, export of 2016 target of textile industry laid out up to 30-31 billion USD seems to be very far away. Even, the analyst forecasts by 2017, the Vietnam textile & garment industry continues to be led by the market, plummeting world demand.
Some comments of optimism for that July and August every year, the textile industry in the low season so orders and export slump is not disturbed. However, according to Mr. Pham Xuan Hong, the decline of the textile export currently not only the weather service that many COMPANIES are having difficulty due to shortages. Orders decline due to the demands of the world market, in which the EU market continued to less satisfactory. At the same time, COMPANIES are Free to compete fiercely with the countries in the region such as Cambodia, Bangladesh, Myanmar, Laos, Indonesia … No less orders from Vietnam were moved to neighboring countries.
Opponents of increased competitive advantage
General Director of textile exports in HCMC to cheap labour advantage of Vietnam recently. Than the opponent has the same strong exports textiles such as Indonesia, India, Bangladesh, Sri Lanka, Vietnam workers higher wages plus the exchange rate in the country is too stable, while the water constantly banknotes to support exports made competitive edge of Vietnam weaker FIRMS.
At this time, according to Mr. Le Quang Hung, Chairman of the Garment joint stock company Saigon Garmex, competitive advantages that should promote Free ENTERPRISE is the skill, the skill of workers in creating the products with high technology content along with machinery investment, modern technology. A strategy that COMPANIES need is moved to FOB (raw materials, semi-finished products) instead of the current processing. Garments exports FOB form helps COMPANIES dealing directly with the buyer (not through intermediaries) will capture the market more quickly, often before the order from the second half of the year. Thus, when the lack of orders, COMPANIES have time to find a way to deal.
To deal with the situation of plummeting orders, Mr. Pham Xuan Hong said recently, the DN of embroidery knitting textiles
HCM constantly participate in fair trade in many markets in search of new customers. The society also encourages COMPANIES to share the order in terms of the current deficiencies. “In particular, some ENTERPRISES only exported today decided to return to the domestic market to offset a lack of order part and hold through the difficult phase”-he Hong says.
Mexico Vietnam textile & garment industry survey
A DN in the textile industry National Chamber of Mexico (Canaintex) will have a trip to survey and analyze the textile sector of Vietnam from June 22 to 27-8.
According to Vietnam +, Mexico delegation is expected to visit the 7 factory and a textile INDUSTRIAL ZONE in order to analyze and study the processes from the manufacture of yarn to garments. Canaintex identification when TPP is adopted, Vietnam’s garment exports will increase and expand the market share of the TPP, especially America, thanks to the terms of a bilateral tariff incentives. Vietnam is currently the leading provider the second important textiles to the US market, while Mexico ranks 6. B.T.-D
Thai Local Media