|
Garment companies sign export contracts for the third quarter
Many garment companies have signed export contracts for the whole third quarter of this year at higher prices than last year.
The Ministry of Industry and Trade (MoIT) said that this is a firm foundation for the sector to increase its export value in the second half of this year.
According to the Vietnam Garment and Textile Group (Vinatex), in the first half of this year garment exports reached US$4.19 billion, up 20 percent compared to the same period last year.
However, rising material prices, the turnover of employees in some enterprises and particularly the rising cost of borrowing made the earning ratio fall to 8 percent/capital/per year from 15.6 percent in 2007.
Exports to the US in particular and other countries in general face a number of challenges due to the high exchange rate between Vietnam dong and US dollar.
After several months of investigation, the US Department of Commerce (DOC) stated that there is no proof that Vietnamese garment products are being sold at “dumping prices”. This is a good signal for the garment sector in the future. However, India has announced that cotton products from China, Thailand and Vietnam are being dumped on Indian market.
To cope with the situation, the MOIT has urged Vinatex to speed up exports in order to help the sector fulfill this year’s export target of more than US$9 billion. It has also asked the sector to export high value products and pay in other currencies, instead of the US dollar.
Vinatex is focusing on removing obstacles to the development of local materials to reduce imports. It is also focusing on the Middle East and African markets to make up for the falling sales in traditional markets.
It has also proposed that the Government supports the sector in coping with non-tariff barriers and setting up cotton growing and industrial areas.
VNN
|
