Vietnam'S Textile And Garment Industry Faces Recession Crisis

According to Vietnam's Ministry of industry and commerce, although Vietnam's textile and garment exports amounted to US $10 billion 300 million in the 3 quarter of this year (2011), it was 28% higher than that in the same period (2010). However, the recession in the main export markets of the United States and European Union countries has affected the growth of Vietnam's textile and garment industry.

According to the Vietnam Textile Association, the United States and the European Union predict Vietnam at the end of this year.

Moreover, the recent economic downturn in the European Union has also affected the export of Vietnamese textile products.

In addition, as Vietnam's textile industry relies heavily on imports of raw materials, and since October 1st this year, Vietnam has raised the minimum basic wage, and staff salaries have accounted for 65% of the production cost of the textile and garment industry, resulting in a substantial increase in production costs and greater pressure on operators.

At present, the export of clothing products is most affected by coats, whose orders have dropped by 30%, and exports to the EU are expected to decline by 10~15%.

In order to enhance the export of textile products, Yue merchants have actively expanded export markets to Japan, South Korea, ASEAN and Canada.

Nevertheless, according to the chairman of the Vietnam textile and Garment Association, the target volume of export business and clothing exports was set at US $13 billion 500 million this year, with an estimated growth rate of 10%.