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| Many textile and garment export enterprises had not had any long-term orders for next year. |
In previous years, the country experienced a growth rate of 20 per cent in textile and garment export revenue. This year, the total export value for these industries is estimated to reach 96 percent of the yearly plan with about US$9.1 billion, an increase of only 17 per cent, according to the Viet Nam Textile and Garment Group (Vinatex).
However, next year the exports for the industry were expected to experience a dramatic decline and increase a mere 5 per cent over this year, said Le Quoc An, chairman of Viet Nam Textile and Garment Association (Vitas).
The country’s initial target was set at $11.5 billion, An said, but this goal must be reduced due to production and business challenges already forcing an overall downward trend for export value starting in the third quarter this year.
Vinatex statistics show that Viet Nam’s textile and garment exports started to drop off in August. The export value was $916 million in August, fell to $831 million in September and dropped further to $753 million in October.
That figure was $780 million in November and is expected to hit $800 million this month.
Le Tien Truong, Vinatex deputy general director, said economic downturns in Viet Nam’s key textile and garment export markets would affect national export values this year and next year.
Pham Xuan Hong, deputy chairman of the HCM City the Association of Garment, Textile, Embroidery and Knitting (Agtek), agreed that the textile and garment industry would have many difficulties in the future.
Foreign partners of some enterprises have reduced their orders, even after the products have already been produced, according to the Agtek. Orders for the domestic market have also slowed down at the end of the year, which in previous years was a busy shopping season.
Many textile and garment export enterprises had not had any long-term orders for next year, Hong said.
Agtek claimed that orders of for textile and garment exports might reduce as much as 30 per cent next year with no dramatic economic recovery in sight.
Dream weavers
With the current global economic downturn, Agtex said that textile and garment enterprises should be coming up with solutions to improve their competitiveness and quality of products for all export markets.
A good opportunity to stabilise production levels and business for the new year is the free trade agreement between Japan and ASEAN effective as of December 1, 2008.
Under the agreement, Japan will reduce its import tariff from 10 per cent to zero for Vietnamese textiles and garments using materials of Vietnamese or ASEAN origins.
Some industry experts suggested enterprises work together to improve production ability, share business experiences, and introduce customers to each other.
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