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Battling textile industries optimistic
Viet Nam’s garment and textile companies are encouraged by forward export orders after export turnover reached its lowest growth rate, 2 per cent, in April and reduced by 11 per cent last month.
In previous years, domestic garment and textile companies received most export orders for the following Northern Hemisphere fall in the first two months of the year. But by the end of January and February, most companies had only received orders for March.
Despite the sluggish growth and economic recession, companies remain optimistic.
The Ha Noi-based Garment 10 Joint Stock Company has orders for August and September and plans to deliver 1.5 million items monthly to European partners.
"In the first four months, our company’s export turnover reached $25 million, up 15 per cent from the same period last year," said managing director Hoang Minh Khang.
To help achieve the results, the company sent representatives to the European Union to find partners. Its biggest, a Danish company, ordered 800,000 items this year. The company also has a contract to send 7,000 suits a month to a Japanese firm.
Diep Thanh Kiet, deputy chairman of the HCM City Association of Garment- Textile Embroidery-Knitting, said many members, mainly from large and medium-sized companies, had orders for next months.
Changing markets
The US and EU, which have taken 70 per cent of the nation’s garment and textile exports, were the industry’s main markets. However, in the first four months of this year, exports to the two markets fell sharply as sales to other Asian markets, such as Japan, increased.
Khang said in previous years, half of Garment 10’s exports went to the US. The rest went to the EU and Japan. Now, 35 per cent goes to the US, 40 per cent to the EU and the rest to Japan.
The export ratio at the Sai Gon Garment No 3 Joint Stock Company in HCM City has also changed as exports to Japan rose 10 per cent to 60 per cent.
The US remains the biggest importer of Vietnamese garments, but Japan is the new target market for companies as the free trade agreement eliminates tariffs between the two countries.
Exports to other Asian markets have risen 20 per cent recently.
The garment sector executives consider any growth as a good sign during a recession but say labour shortages continue to present challenges.
Many labourers remained in their villages after Tet, or moved to other companies offering a higher salary, said Kiet. Many companies wanted to hire and train staff but had difficulties finding workers.
VNS
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