• With great difficulties, textile enterprises are trying their best to save themselves

    With great difficulties, textile enterprises are trying their best to save themselves
    OV.VN -Fast difficulties make the competitiveness of the textile and garment industry decline, to reduce the target turnover from 31 billion to 29 billion USD this year, but still difficult.

    In 2016, the Vietnam Textile and Garment industry set a target of an export turnover of 31 billion USD. Facing many difficulties and disadvantages appeared, the competitiveness of the industry declined. In June, this target was adjusted to 29 billion USD. However, even with this adjusted figure, Vietnam Textile and Garment will be difficult to achieve by the end of this year.

    The hardest 10 years

    Tex-Giang Garment Joint Stock Company headquartered in Tan Huong Industrial Park (Tien Giang Province) is a high-profit enterprise for many years. However, while this time in previous years, the company had a covered order for the lines until the end of the year, now just through September, it had to "eat", even accept orders with prices. value is low to 2,500 employed workers. Finding new orders is difficult, making Tex-Giang's target of 700 billion dong of export value this year difficult to achieve.

    Ms. Vo Tran Thi Huyen, Deputy General Director of Tex-Giang Garment Joint Stock Company acknowledged: “Today's problem is the peak of the last 10 years, we have the most difficulty in terms of orders. In 2008, despite the economic crisis, we did not have any difficulties like now ”.

    By the end of August 2016, the export turnover of the whole Textile and Garment industry reached only 18.7 billion USD, equivalent to 64.5% of the year plan. With this turnover, the growth rate was only 4.3% over the same period last year. Looking back at the steady 2-digit growth over the past 10 years, it can be seen that Vietnam's Textile and Garment industry has never faced so many difficulties as at present.

     

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    Besides the external causes such as the fluctuations of the world economy; currencies of some countries were devalued, making export disadvantageous; reduced purchasing power; Trade agreements that the textile and garment industry can benefit from such as TPP and FTA have not come into effect. The rapidly increasing minimum wage also contributes significantly to the cost of the business. A garment enterprise leader has done a very detailed input cost problem to show that the part of the salary cost in the total product cost accounts for 60% while in Myanmar only accounts for 15 to 20%. .

    Another disadvantage is the tax rate. While Vietnamese textile and garment products enter the European market, the tax rate is from 9 to 12%, while the tax rate of apparel from countries such as Bangladesh, Cambodia, and Laos is 0%. Losing competitive advantage in low cost plus high tax rates are the most basic reasons why orders from Vietnam move to other countries.

    Therefore, a great desire of the current textile and garment enterprises is that the government of the ministries, branches ... function ... to accompany the business; There should be good negotiations or decisions, close to the world market so that businesses can stabilize tax rates with other countries.

     

    Try to save yourself

    The good news is that while waiting for the policy mechanism to change, businesses have made efforts to "save" themselves. Small businesses are often the ones most affected early - making the most of their advantages such as having a lean apparatus, adopting modern technology lines, making small orders in quantity but having high value, usually high-end fashion items of famous brands.

    With only 850 workers, 28 Hung Phu Garment Joint Stock Company (168 Quang Trung-Go Vap District, Ho Chi Minh City) still aims to complete 2.8 million exported products with revenue of VND 380 billion and finish 1 month ahead of schedule.

    Mr. Do Huy Nien, representative of 28 Hung Phu Garment Joint Stock Company confidently: “Up to this moment, we are not affected by production. Why do we do that? First of all we go directly to product quality and the fashion is constantly changing, but we are responsive. Therefore, customers who specialize in high-end goods, they find themselves ”.

    And large businesses have the advantage of strategic customers and response to delivery times for large orders. Dong Tien Garment Joint Stock Company (Dong Nai province) has 5,500 workers. The idea that in this difficult time, it was difficult to find a job to endure for so many labors. But with many years of experience in making goods for fastidious Japanese partners, with the strength of producing sportswear and underwear, Dong Tien has attracted many orders.

    Ms. Ngo Thi Manh- Deputy General Director of Dong Tien Garment said: “While some businesses do not have garments, Dong Tien has to do its best to timely export. A lot of orders are due to having strategic customers, working together for a long time and trusting each other. It is likely that this year the company will complete the plan ahead of schedule ”.

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