Apparel Sector Facing Huge Difficulties despite High Export Growth

Vietnamese textile and garment makers are facing difficulties despite their high export growth in the first half this year, said Le Quoc An, chairman of the Vietnam Textile and Garment Association (Vitas).

&ldquoThe sector made export revenues of US$4.2 billion in the first half, representing 44.21 per cent of the yearly target of US$9.5 billion and increasing by 20 per cent on-year. It may reach US$5.3 billion export turnover in the second half thanks to a lot of orders,&rdquo An added.

He, however, said local garment enterprises are facing many difficulties, including capital shortage and workforce crisis.

At present, the enterprises are very difficult to borrow loans and they can not raise prices of their products despite rising material prices, An added. 

In addition, serious labor shortage and continuous strikes have hit hard the industry.

 

The difficulties made profits of the Vietnam National Textile and Garment Group (Vinatex), the country&rsquos biggest apparel maker, reduce to VND119 billion (US$7.21 million) in the first half, representing merely a half of the set target.

The textile and garment sector is now Vietnam&rsquos biggest forex earner, excluding crude oil, making up 15 per cent of the country&rsquos total export revenues. It is employing 1.2 million workers. (VietNamNet, Vnexpress)