Decline in garment exports from Vietnam

The Ministry of Industry and Trade has reported that 80 per cent of Vietnamese garment and textile companies have received export orders until the end of the first quarter, but quantities are small, showing a sharp decline in volumes.

Garment export turnover to the EU market has dropped by 25 per cent in the first quarter of this year. (Photo: SGGP)

Compared to the same period last year, export turnover to the EU market has dropped by 25 per cent; to the US market by 12 per cent; and to Japan by 7 per cent; presumably due to the present economic downturn.

Another reason that led to a drop in garment export turnover in Vietnam was due to most importers shifting to developing countries where import tariff is zero per cent, such as Cambodia and Laos, instead of Vietnam where it is 10 per cent.

In order to tackle such problems, the ministry has suggested that garment companies use natural materials; buy materials directly; and create innovative finished products. Garment companies should now also improve their designing sector, to achieve high growth in the future, instead of merely relying on processing orders.

By Do Linh – Translated by Thuy Doan

Other news

Most view

The VN-Index of the Ho Chi Minh Stock Exchange (HoSE) rose 21.12 points on July 18 (Photo: VNA)

VN-Index rises over 21 points

The VN-Index of the Ho Chi Minh Stock Exchange (HoSE) rose 21.12 points on July 18, with 223.9 million shares worth over 4.9 trillion VND (211 million USD) traded. 

Banking-finance

VNPT & SeABank cooperate to enhance connections

The Vietnam Posts and Telecommunications Group (VNPT) and SeABank just co-signed cooperation agreement, aiming to develop the two sides’ economic, business and investment potential.


Economy

185 leading domestic & in't enterprises join in VN ETE 2018

The Vietnam Exhibition of Electrical Technology and Equipment (Vietnam ETE 2018) and the Exhibition of Products, Technologies for Energy Saving and Green Power (ENERTEC EXPO 2018) yesterday kicked off in HCMC’s Saigon Exhibition Convention Center in district 7.

Self - introduction

VNPT targets to be leading digital service provider in Vietnam

The grand opening ceremony of the VNPT-Information Technology Company (VNPT-IT), a new member of the Vietnam Posts and Telecommunications Group (VNPT), was held yesterday in Hanoi. With thousands of IT engineers and the focus on developing state-of-the-art technological products related to Artificial Intelligence (AI), Bigdata, and Blockchain, the new company is considered the main force to help VNPT fulfill the goal of becoming a leading digital service provider in Vietnam and an important Digital Hub of the neighborhood as well as the world.

Stock market

SAS profits VND 118bln

The Southern Airports Service Joint Stock Company (Sasco) which is listed under code SAS on the Unlisted Public Company Market (UPCoM), announced its second quarter’s financial report with net revenue at VND 634.5billion, an increase of 14 percent compared to last year.