Workers at a garment factory. The garment and textile sector will miss the target of 31 billion USD this year. (Source: vietq.vn)Hanoi (VNA) - The garment and textile sector will be hard pressed to achieve its export turnover target of 31 billion USD this year due to a lack or orders.
Therefore, the target must be lowered to 29 billion USD, said Truong Van Cam, Deputy Chairman of the Vietnam Textile and Apparel Association (VITAS).
Cam said the current order shortage could result in the decade’s lowest growth level of 4.3 percent.
In the first eight months of the year, export turnover of garment and textile products reached 18.7 billion USD, meeting 64.5 percent of the annual target.
The Hung Yen Garment Joint Stock Corporation has 13 businesses with more than 14,000 labourers. The corporation targeted an export turnover of 280 million USD, but by the end of last month had only reached 160 million USD, posting a 10-percent drop compared to last year.
Nguyen Xuan Duong, Chairman of the corporation’s management board, told the vov.vn online newspaper that his firm had enough orders for this month, but in previous years the number of contracts at this time was usually enough for production until the end of the year.
In addition, the exchange rate and salary policies have made prices higher 2-4 percent higher than those of textiles from other countries. The increasing production costs, limited orders and pressure by exporters to reduce selling prices have placed a burden on the corporation, Duong said.
He added that the exchange rate of the Vietnamese dong had not been adjusted for years, while the currencies of other countries were devalued by 18-20 percent, making their products 20 percent cheaper than Vietnamese ones.
Importers asked us to lower selling prices by 18-20 percent, even 30 percent. However, several still found partners from other countries, he said.
Several other garment and textile firms have also received small orders until the end of the third quarter of the year.
Hoang Ve Dung, Chairman of the Duc Giang Garment and Textile Corporation’s management board, said obtaining orders had become more complicated, demanding higher quality and advancing delivery deadlines.
VITAS’s Deputy Chairman Cam said domestic garment and textile firms should discuss with each other the difficulties in competing with foreign companies.
“We asked our member companies to avoid internal competition while enhancing cooperation to share orders. The local firms should strive to reach the export turnover of around 2.66 billion USD a month in the year-end months to meet the whole year’s target,” he added.
෴ The sector will need basic and synchronous investments to not only overcome difficulties and ensure sustainable and fast growth.-VNA
