Garment exports may slow down

Garment exports may slow down

(27-12-2008)

Producing clothes for export at the Dong Nai Garment Joint Stock Company. At present, orders for textile and garment exports as well as prices have fallen by 20-30 per cent, and in some cases, by 30-50 per cent, compared to last August. — VNA/VNS Photo Van Khanh

HCM CITY — Export growth for the garment and textile industry is expected to slowdown next year because of the global financial crisis, according to the industry’s main trade association.

At a meeting on Thursday of the Garment, Textile, Embroidery and Knitting Association (AGTEK), officials said exports to the US, France, Spain and Japan would suffer the most.

Markets in Northern Europe and Switzerland would remain stable, they said.

In recent months, importers have cut back on orders and the domestic market has also slowed at year-end, even during the busy holiday season.

The slow pace of payments from importers has also caused difficulties for garment and textile exporters. Many companies have not received long-term orders for exports next year, AGTEK said.

Orders for textile and garment exports as well as prices have fallen by 20-30 per cent, and in some cases, by 30-50 per cent, compared to last August.

Representatives of several garment and textile companies said their top priority now was finding a way to survive, and as a result, would not set an export target for next year.

Nguyen Thi Phuong Quang, general director of Long An Garment and Textile Import Export Joint-Stock Company, said the Government’s recent economic stimulus package should contain measures to help the garment industry.

Japanese agreement

The industry has proposed that the Government lower the corporate income tax and extend tax payment deadlines.

They have also asked the Government to lower labour union fees to 1 per cent from 2 per cent.

The garment industry will have more export opportunities when a free trade agreement between Japan and ASEAN (Association of Southeast Asian Nations) becomes effective on December 1.

Under that agreement, Japan will reduce its import tariff from 10 per cent to zero per cent on Vietnamese textiles and garments that use materials of Vietnamese or ASEAN origin.

Recently, garment and textile companies in HCM City have focused their efforts on the Middle East, Africa and Russia.

Despite financial difficulties faced by the sector, most company representatives said salaries and Tet bonuses for workers would be paid. — VNS