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Apparel firms struggle to meet export growth targets
Apparel enterprises have some serious challenges ahead, as inflation and high materials costs are affecting profit margins, and the economic crisis cuts into key export markets.
Diep Thanh Kiet, chairman of the Ho Chi Minh City Association for Textiles, Garment, Embroidery and Knitting, said apparel enterprises are having difficulties maintaining the high export value growth rates that they saw in the first nine months of this year.
He added that the enterprises are facing other difficulties, including high inflation, high interest rates, high material prices and a lack of workers.
This will make it difficult to achieve the necessary monthly target of US$900 million needed to reach the industry’s annual target of US$9.5 billion.
In the first nine months of the year, the industry achieved an export value of US$6.8 billion, an increase of 20.2 percent over the same period last year.
The Vietnam Textile and Apparel Association (Vitas) said that textile and garment exports would be tough following the US financial crisis, since the country was the largest export market for Vietnamese textiles and garments.
Enterprises were also facing cuts in exports to the European Union, the second largest importer of Vietnam’s textiles and garments, said Vitas.
VOV
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