Textile and garment have difficulty because orders are ‘split’

According to a report of the Ministry of Industry and Trade, due to the US-China trade tensions affecting the exchange rate between currencies, the price of processed goods in Vietnam is higher than that of some countries in the region such as South Korea and China. This has led to an impact on export orders, especially for the textile and garment group.

Accordingly, the number of new orders for some enterprises is only about 70% compared to the same period in 2018. In particular, the consumption of yarn and raw materials encounters many difficulties because the main export market is China ( accounts for 60%) to cut imports.

Meanwhile, garment products also experienced a decrease in orders. If in 2018, by the middle of the year, many large enterprises in the industry had orders until the end of the year, in 2019 they could only sign orders with small quantities and signed monthly. The general psychology of buyers is worried that the US-China trade war will escalate, so orders are “divided” instead of placing large quantities as in previous years.

Up to now, according to a report of the Ministry of Industry and Trade, in the first 8 months of 2019, fabrics made from natural fibers are estimated at 412.8 million m2, an increase of 10.5%; production of woven fabrics from synthetic and man-made fibers was estimated at 786.8 million m2, up 9.9%; casual wear was estimated at 3,359.5 million pieces, up 8.9% over the same period. Export turnover of textiles and garments in 8 months is estimated at 21.7 billion USD, up 9.8% over the same period.

“Although textile and garment production and export both have growth over the same period, because orders are constantly changing, businesses need to take many measures to change their production and business methods in order to improve the quality of their products and services. suitable to the situation”, the leader of the Ministry of Industry and Trade acknowledged.

Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas), admitted that from the fourth quarter of 2018 to now, the textile and garment industry has suffered many losses due to the impact of the US-China trade war. In which, yarn exports to China decreased sharply due to the decrease in the purchasing power of manufacturers here. Besides, the trade war is also putting pressure on the supply of Vietnam’s textile and garment industry with textile enterprises having to pay higher costs to buy fabrics from China while still under pressure to reduce costs. prices from export orders.

“The target of 2019 is that textile and garment exports will reach US$39.5-40 billion, of which the US is the main market accounting for more than 40% of turnover. Textile and garment enterprises actively promote yarn exports to Taiwan, South Korea, Japan and the Middle East countries, so despite difficulties, the growth rate in 8 months still reached 10%,” said Mr. Giang.

According to the E-Newspaper of the GOVERNMENT OF THE SOCIAL REPUBLIC OF VIETNAM