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Vietnamese 2016 apparel export target may be unreachable

By
Fibre2Fashion
Published
today Aug 2, 2016
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The export target of $30 billion set by the Vietnamese textile and apparel industry may be an overwhelming task considering that exports reached only $12.76 billion in the first six months or 41 per cent of the 2016 target.


The export target of $30 billion set by the Vietnamese textile and apparel industry may be an overwhelming task. - Archiv


Speaking at a press conference in Hanoi, Vu Duc Giang, chairman of VITAS said this was mainly due to lack of orders for domestic companies and that exports were driven mainly by companies with FDI investment.

Giang added that the biggest challenge was finding new orders and it was completely possible that SME’s would be forced to discontinue doing business, with exports halting at less than $29 billion.

He further added that, while Cambodia and Bangladesh enjoy incentives offered by the US and Europe, wages in Sri Lanka, Bangladesh and Myanmar were lower than in Vietnam.

According to the chairman, in order to benefit from lower costs, importers were shifting their orders to other countries.

VITAS vice chairman Nguyen Xuan Duong also pointed out that, while their currency Dong was stable against the US dollar, those of other countries had depreciated between 8 and 20 per cent.

He also said that interest rates which stand between 8 and 10 per cent, high when compared with those of its competitors, led to Vietnam’s prices being higher by 20-30 per cent as against those of its rivals.

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